Targa sells stake in GCX pipe
US Midstream Targa Resources, one of the largest infrastructure companies delivering natural gas and natural gas liquids in the US, said February 3 it had sold its 25% equity interest in the Gulf Coast Express Pipeline (GCX) for $857mn.
The interest was held by Targa’s wholly-owned subsidiary, which had initially been part of an agreement with Stonepeak Partners investment firm to help finance the development costs of GCX in 2018. Both Stonepeak and Targa expressed intentions to exit the agreement in 2021.
GCX transports approximately 2.0bn ft3/day of Permian natural gas to Agua Dulce near the Texas Gulf Coast and was placed in service in 2019. It enables exports to Mexico and LNG liquefaction terminals on the Gulf coast.
Kinder Morgan Texas Pipeline owns a 34% interest in GCX and is the operator of the pipeline. Other equity holders include Altus Midstream and DCP Midstream.