Page 6 - NorthAmOil Week 45 2022
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NorthAmOil PIPELINES & TRANSPORT NorthAmOil
Targa to build Daytona NGL
pipeline in Texas
TEXAS TARGA Resources has said it will build the Day- earnings, that construction is continuing on
tona NGL pipeline from the Permian Basin to Targa’s 275mn cubic feet (7.79mn cubic metres)
North Texas. The pipeline is expected to be in per day Legacy II plant and 275 mmcf per day
service by the end of 2024 and to cost an esti- Greenwood plant in the Permian Midland basin,
mated $650mn to build. its 275 mmcf Midway plant in Permian Dela-
Daytona will connect to a 30-inch (762- ware, and its 120,000 bpd Train 9 fractionator in
mm) diameter segment of Targa’s existing com- Mont Belvieu.
mon-carrier Grand Prix NGL pipeline system, In addition, Targa has announced the con-
the company said. From there, volumes will be struction of a new 275 mmcf per day cryogenic
transported to Targa’s 963,000 barrel per day natural gas processing plant in Permian Delaware
(bpd) fractionation and storage complex in Mont – the Wildcat II plant – which is expected to begin
Belvieu on the Gulf of Mexico. operations in the first quarter of 2024. This is in
Grand Prix, with 550,000 bpd capacity response to expanding production and to meet
and which is 75% owned by Targa and 25% by the infrastructure needs of producers, said Targa.
Blackstone Energy Partners, will own Daytona. Third-quarter 2022 net income for Hou-
Each owner will fund their respective share ston-based Targa was $193.1mn compared with
of the pipeline’s cost based on their ownership $182.2mn for the third quarter of 2021. Targa
percentage. reported third-quarter 2022 adjusted earnings
Targa expects to fund the construction of before interest, taxes, depreciation, and amor-
Daytona out of operating cash flows and avail- tisation (EBITDA) – a measure of profit – of
able liquidity. $768.6mn, representing a 15% increase when
Targa also announced, with its third-quarter compared to the second quarter of 2022.
INVESTMENT
Dominion reportedly considering
selling stake in Cove Point LNG
MARYLAND DOMINION Energy may sell its 50% stake a “top-to-bottom” review of its businesses. The
in the Cove Point LNG terminal in Maryland, company’s stock performance – down around
according to sources familiar with the matter 12% so far in 2022 – has been tepid over the past
that have been cited in a Bloomberg report. few years.
The stake in the facility, which is located in The review is necessary, said Blue. “Some
Chesapeake Bay on the Mid-Atlantic coast, is would suggest that doing the same thing over
worth several billion dollars. and over and expecting a different result doesn’t
The talks are at an early stage, and Dominion make a lot of sense,” he added. “There are two
may ultimately not sell, said the sources. How- drivers behind today’s announcement of a
ever, they added that the company was working review: one, enhancing shareholder value and
with unnamed advisers to secure potential bids, two, ensuring the sustainability” of plans to
including for infrastructure. Dominion has not reduce carbon in the company’s regulated utility
commented on the matter. business, he said. Blue did not disclose how long
The terminal is 25% owned by Berkshire the review would take.
Hathaway Energy, which also operates it, and In August, Cove Point exported its 300th com-
25% by Brookfield Asset Management. Two mercial cargo since international trade began.
years ago, Dominion sold most of its natural The facility’s LNG has “supported the energy
gas storage and transport assets to Berkshire needs of 28 countries, including many in Europe
Hathaway. in recent months”, said Berkshire Hathaway.
The Cove Point facility started exporting There has been a gas shortage in Europe as the
LNG four years ago. continent pivots away from imports of the fuel
Dominion’s president and CEO, Robert from Russian in response to the war in Ukraine.
Blue, said in the company’s third-quarter earn- European countries are increasingly turning to
ings call on November 4 that it would initiate LNG to fill the gap.
P6 www. NEWSBASE .com Week 45 10•November•2022
