Targa Plans Three Permian Gas Plants, New Pipeline by 2028
Targa Resources will build three new natural gas processing plants and a 70-mile pipeline in the Permian Delaware Basin, according to a Reuters report via BOE Report, as the midstream operator expands to keep pace with rising shale output.
Market Impact
The three plants, named Wrangler, Ranger and Ranger II, will add a combined 825 MMcf/d of processing capacity and are expected to enter service in the first half of 2028. Targa said it is also evaluating up to five additional processing plants in the Delaware Basin over the longer term and is considering another fractionation train at its Mont Belvieu complex in Texas.
The buildout comes as midstream companies benefit from strong Permian oil and gas production, rising natural gas demand tied to LNG exports, and growing power needs from AI data centers, cryptocurrency mining, and broader data center growth, per the report. Targa’s new pipeline, part of its Bull Run residue system, will move gas from the new plants to the Waha hub and is also slated to start up in the first half of 2028. Separately, Targa signed new 20-year, fee-based agreements with ExxonMobil units covering gathering, processing, and downstream services in the Permian Basin.
What It Means for Subcontractors
- Construction crews and E&I contractors should watch for bid packages tied to the Wrangler, Ranger, and Ranger II plants, with a first-half 2028 in-service target giving a roughly 18-month construction window from now.
- Pipeline contractors and HDD specialists have a concrete target in the 70-mile Bull Run residue pipeline connecting the new plants to the Waha hub, also due online in the first half of 2028.
- Fabrication and mechanical subcontractors should track Targa’s Mont Belvieu complex in Texas, where a potential new fractionation train could generate additional scope beyond the Permian plant work.
- Firms with Delaware Basin experience should position early: Targa is evaluating up to five more processing plants in the region longer term, on top of the three already announced.
- The 20-year ExxonMobil gathering and processing agreements signal sustained, long-term gas volumes in the Permian, supporting steady demand for maintenance, gathering line, and processing subcontract work well beyond the initial construction phase.
