Sept 30 (Reuters) -

Targa Resources ( TRGP ) will build a 500-mile pipeline to

transport natural gas liquids from its plants in the Permian

Basin to its fractionation and storage complex in Mont Belvieu,

Texas, it said on Tuesday.

The Speedway NGL Pipeline is expected to cost about $1.6

billion and will have an initial capacity of about 500 thousand

barrels per day.

The 30-inch diameter pipeline is expected to be

in-service in the third quarter of 2027.

The pipeline operator will also build a natural gas

processing plant, called the Yeti, in the Permian Delaware

basin, Texas, with a capacity of 275 million cubic feet per day.

Including the Yeti, Targa is constructing five gas

processing plants in the Permian that will be online in two

years.

The company also said it will build a 35-mile natural gas

pipeline to link several of its processing plants in the Permian

Midland, and convert a 55-mile existing pipeline to natural gas

service, forming the Buffalo Run system that connects its

Midland and Delaware intra-basin networks.

Targa expects total net growth capital expenditures for 2025

to be around $3.3 billion.

It supplies natural gas and NGLs to key markets through its

network of gathering and processing assets across the Permian

Basin, Eagle Ford Shale, Bakken Shale and other major U.S. oil

and gas regions.

The company transports, processes and fractionates NGLs into

component products like ethane, propane and butane.