In the last trading session, the stock price of Targa Resources Corp (NYSE:TRGP) gained 0.88% to close the day at $50.37. The gains came at a share volume of 2.29 million compared to average share volume of 1.71 million. So far in this new year, the stock has posted gains of more than 4%.
American Midstream Partners LP (NYSE:AMID) reported the commencement and completion of deliveries on the earlier reported Cayenne Pipeline joint venture between Targa Resources and AMID. Cayenne will primarily have 40,000 barrels a day of Y-grade NGL transport volume capacity with the ability to increase over 50,000 barrels a day. Cayenne will start from the Targa-managed Venice gas processing facility and offer to fractionation in Southern Louisiana.
The start of Cayenne offers American Midstream with strategic transport capabilities for the bulk of all NGL capacity out of deep-water Mississippi Canyon area of Gulf of Mexico where AMID has integrated and developed transportation and gathering network. Cayenne is advanced by a 15-year commitment for all NGL production from Targa Resources’ 750 MMcf/d Venice facility with inlet from six offshore pipelines of Gulf of Mexico.
Lynn Bourdon III, President and CEO of American Midstream, expressed that beginning Cayenne demonstrates their knack to react to market demand as well as simultaneously deploy on extremely attractive commercial prospects. Cayenne benefits offshore producers with a considerable jump in NGL take away capacity, and also creates considerable value to American Midstream by opting for an underutilized pipeline and changing its services into a strategic assignment.
American Midstream marks as a growth-based limited partnership established to offer major midstream infrastructure that associates producers of crude oil, natural gas, condensate, NGLs and specialty chemicals to end-use segments. The company’s assets are strategically based in some of the most fertile onshore and offshore basins in the Permian, East Texas, Bakken, Eagle Ford and Gulf Coast.