Targa Resources to Buy Bakken Assets; Crude Oil Pipeline, Storage, Natural Gas Pipeline, Processing Plant

Updates

December 5, 2013: Targa calls off plans for CBR terminal at Port of Tacoma, Washington State. Victim of Sierra Club.
 

Original Post

Link to Oil & Gas Journal.

Targa Resources Partners LP plans to buy Saddle Butte Pipeline LLC’s Williston basin crude oil pipeline and terminal system along with its natural gas-gathering and processing operations for $950 million.

Data points:

• 155 miles of crude oil pipeline: McKenzie, Dunn, and Mountrail counties
• combined crude oil capacity of 70,000 bbls (Johnsons Corner Terminal, 20K, expanding to 40K) and Alexander Terminal (30K)
• 95 miles of gas-gathering pipelines
• 20 million cubic foot/day gas procession plant; expanding to 40 mcfd
• Targa will require CAPEX of $250 million in 2013 to support system expansion to meet producer activity

Comment: perhaps in the big scheme of things this may not be such a big deal, but from where I sit, this is huge. these operations are not static; they are growing.... growing to meet producer activity. It is all quite incredible. The Bakken continues to impress.