Targa Plans Three Gas Plants, New Pipeline in Delaware Basin
Three new natural gas processing plants totaling 825 million cubic feet per day of capacity are coming to the Delaware Basin, Permian Basin Oil & Gas Magazine reports, with startup targeted for the first half of 2028.
Market Impact
Houston-based Targa Resources announced the Wrangler, Ranger and Ranger II plants on Aug. 17. Alongside the processing buildout, Targa said it will construct a new 70-mile natural gas pipeline as part of its Bull Run residue system, moving gas from the new plants to the Waha hub for takeaway.
The announcement came bundled with new midstream agreements in the Permian Basin involving subsidiaries of ExxonMobil. Targa said its growth capital spending for FY2026 now stands at about $5 billion, signaling one of the larger midstream buildouts underway in the Delaware Basin as producers continue pushing gas volumes that need processing and takeaway capacity.
What It Means for Subcontractors
- EPC and construction firms in the Permian region should expect subcontract packages tied to the Wrangler, Ranger and Ranger II plants to move through engineering and procurement stages over the next 18 months, given the first-half 2028 in-service target.
- The 70-mile Bull Run residue pipeline to Waha represents a distinct scope from the plants themselves, opening separate bid opportunities for pipeline construction crews, right-of-way contractors, and horizontal directional drilling (HDD) outfits for any road, rail, or waterway crossings along the route.
- Instrumentation and electrical (E&I) contractors should watch for controls and automation packages tied to the three new plants, as gas processing facilities of this scale typically require significant SCADA, metering, and compressor control installation work.
- Pipefitting and mechanical trades in the Permian Basin, particularly around the Delaware sub-basin in West Texas and southeastern New Mexico, can expect demand tied to plant construction and tie-in work connecting new gathering lines to the Wrangler, Ranger and Ranger II facilities.
- Targa’s related midstream agreements with ExxonMobil subsidiaries suggest additional gathering and processing infrastructure work may follow in the same operating area, though specific scopes and timelines for that work have not yet been disclosed.
- With Targa’s FY2026 growth capital now at roughly $5 billion, subcontractors should position early for prequalification, since large midstream operators typically lock in preferred contractor lists well before construction packages go out to bid.
