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Jan 3 (Reuters) – Targa Sources Corp (TRGP.N) mentioned on Tuesday it is going to purchase the remaining stake in its Grand Prix NGL Pipeline that it doesn’t already personal, for $1.05 billion in money from Blackstone Inc’s (BX.N) power unit.
Targa, which can buy 25% stake from Blackstone Vitality Companions, acquired 75% curiosity within the pipeline final 12 months when it repurchased pursuits in its improvement firm joint ventures from funding agency Stonepeak Companions LP for about $925 million.
The Stonepeak deal additionally included 100% curiosity in its Prepare 6 fractionator in Mont Belvieu, Texas, and a 25% fairness curiosity within the Gulf Coast Categorical Pipeline.
Grand Prix has the capability to move as much as 1 million barrels per day (bpd) of pure gasoline liquids (NGL) to the NGL market hub at Mont Belvieu.
“The efficiency of our Grand Prix NGL Pipeline has exceeded expectations because it started full operations within the third quarter of 2019, integrating our main NGL provide aggregation place within the Permian Basin to key demand markets in Mont Belvieu and alongside the U.S. Gulf Coast,” mentioned Targa Chief Government Officer Matt Meloy.
The pipeline connects Targa’s gathering and processing positions all through the Permian Basin, North Texas and Southern Oklahoma to Targa’s fractionation and storage complicated at Mont Belvieu.
Targa mentioned on Tuesday the value of the Blackstone Vitality Companions deal, which is anticipated to shut within the first quarter of 2023, represents about 8.75 instances Grand Prix’s estimated 2023 adjusted EBITDA a number of.
Reporting by Arunima Kumar in Bengaluru; Enhancing by Shinjini Ganguli
Our Requirements: The Thomson Reuters Trust Principles.
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