Targa Resources Corp has entered into an agreement to expand its natural gas processing joint venture (JV) with MPLX in Oklahoma.
Through its existing 60/40 JV, Centrahoma Processing, Targa and MPLX will construct a new 150 million ft3/d cryogenic natural gas processing plant in Hughes County, Oklahoma, to be called the Hickory Hills Plant, to process growing natural gas production from the Arkoma Woodford Basin. The Hickory Hills Plant is expected to begin operations in 4Q18. Targa is contributing to Centrahoma its existing 150 million ft3/d Flag City Plant (acquired in May 2017 and decommissioned shortly thereafter) and that, along with the new additional required plant infrastructure, will become the Hickory Hills Plant. Targa will also contribute to Centrahoma its 120 million ft3/d cryogenic Tupelo Plant in Coal County, Oklahoma.
In exchange for Targa’s contribution of assets to Centrahoma, Targa will maintain its 60% interest in the expanded JV and will receive a cash distribution. MPLX will contribute cash to Centrahoma to maintain its 40% interest in the expanded JV.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/31012018/targa-resources-enters-natural-gas-processing-arrangement/