August 25, 2026 [Storage Terminals Magazine]- Targa Resources Corp. has entered into new long-term, integrated midstream agreements with subsidiaries of ExxonMobil, strengthening the companies’ strategic relationship across the Permian Basin.

The agreements include long-term, fee-based natural gas gathering and processing (G&P) and downstream services across the Permian’s Delaware and Midland basins. The arrangements include significant new acreage dedications under 20-year agreements, extending the relationship between the two companies through 2046.

In the Permian Delaware, the agreements provide Targa with new acreage dedicated to integrated fee-based services covering natural gas gathering, processing and treating, as well as NGL transportation and fractionation through 2046. In the Permian Midland, the agreements add new acreage dedications and extend existing fee-floor gathering and processing agreements through the same period.

Both the Delaware and Midland agreements also include 20-year NGL dedications to Targa’s logistics and transportation systems.

Targa said the agreements are expected to generate substantial long-term volume growth across its integrated wellhead-to-water infrastructure network. The additional volumes are expected to be accommodated through existing infrastructure, projects already under construction and planned future system expansions.

Targa Chief Executive Officer Matt Meloy said the expanded relationship with ExxonMobil reflects the company’s execution capabilities, integrated infrastructure footprint and operational reliability. He added that the agreements are expected to contribute to Targa’s growth through the next decade and support longer-term adjusted free cash flow.

To support anticipated production growth and the new commercial agreements, Targa has announced three new natural gas processing plants in the Permian Delaware: the Wrangler, Ranger and Ranger II facilities. The plants will provide combined processing capacity of approximately 825 million cubic feet per day (MMcf/d) and are expected to enter service during the first half of 2028.

Targa is also evaluating up to five additional processing plants in the Delaware to accommodate longer-term production growth. The company is further assessing the timing of an additional fractionation train in Mont Belvieu, Texas.

In addition, Targa plans to develop the Bull Run II natural gas pipeline, a new approximately 70-mile pipeline forming part of its Bull Run residue system in the Permian Delaware. The pipeline will provide takeaway capacity from the newly announced processing plants to Waha and will be supported by take-or-pay commitments. Bull Run II is expected to begin operations in the first half of 2028.

As a result of the planned investments, Targa has increased its estimated 2026 growth capital expenditure to approximately $5 billion. The revised outlook includes investment in the new Delaware processing plants, associated field capital and the Bull Run II pipeline.

Targa said the new agreements provide greater long-term visibility into growth while supporting the company’s ongoing investment in processing, field and downstream infrastructure needed to accommodate expected production increases across the Permian Basin.