I may have this wrong, but if I am reading this correctly, this is what is going on:
1. Williams / ONEOK have a joint venture pipeline carrying NGLs from the Piceance/Powder River region in Wyoming to its (Williams) fractionator in Conway, Kansas: the Overland Pass pipeline.
2. Meanwhile, the largest gathering and processing company in the Permian is completing a pipeline from the Permian to its processing and export terminal in Mont Belvieu, east Texas, on the gulf: Grand Prix Mainline pipeline. The Grand Prix pipeline from west Texas (the Permian) to Mont Belvieu is expected to be on line sometime in 2Q19.
3. The gap: between northern Texas and Kansas lies another huge play the "STACK" in Oklahoma.
4. The press release today: Targa and Williams will "close" the gap. Williams will build a 188-mile pipeline, the newly named "Bluestone Pipeline," from its NGL hub in Conway, Kansas, to Kingfisher County in Oklahoma. Meanwhile, Targa will build a 110-mile extension from its Grand Prix NGL pipeline in north Texas to Kingfisher County in Oklahoma ("STACK").
5. The Williams "Bluestone" will interconnect with Targa's Grand Prix extension. Thus the gap will be breached: these two extensions, one from the north, and one from the south, will connect the entire midcontinent, north-to-south from the Bakken to the gulf coast; and west-to-east, from Wyoming to the gulf coast.
6. The good news: the pipelines and extensions are being completed through "oil-friendly" states.
7. Note: this is my understanding of the situation. I do not follow natural gas and NGL pipelines to any great extent. I looked at company presentations very quickly and may have misunderstood/misread something. I do not know much of the geography of the regions/states mentioned above.
8. If this information is important to you, go to the source. Some of the links or sources:
- Williams/Overland Pass
- Targa/operations
- Targa Resources presentation JPM conference, June 20, 2018
- RBN NGL map
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