Targa, Sanchez Energy partner to build plant

October 5, 2015 By    

Targa Resources Partners LP entered into a joint venture agreement with Sanchez Energy Corp. to construct a 200-million-cubic-feet-per-day cryogenic natural gas processing plant in La Salle County, Texas, along with about 45 miles of associated pipelines.

According to Targa, the pipelines will connect Sanchez Energy’s Catarina gathering system to the plant. Targa plans to invest about $125 million into the joint venture. Targa will have a 50 percent ownership interest in the plant and pipelines, and it will manage construction and operations of both. Also, according to a press release, long-term, fee-based contracts with Sanchez Energy will support the plant and pipelines.

The plant is expected to begin operations in early 2017. Before plant operations begin, Targa says it will benefit from Sanchez Energy’s natural gas volumes that will be processed at its Silver Oak facilities in Bee County, Texas.

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