Infrastructure: Targa Resources (TRGP) will soon overtake Enterprise Products (EPD) as Mont Belvieu’s largest fractionator, ending Enterprise’s six-and-half-year run atop the region.
Exports: NGL exports increased +17.5% W-o-W for the week ending July 24, with both ethane and LPG exports showing growth.
Rigs: The total US rig increased to 594 the week of August 1. Liquids-driven basins decreased to 453, down 2 rigs W-o-W.
Infrastructure:
Targa Resources (TRGP) will soon overtake Enterprise Products (EPD) as Mont Belvieu’s largest fractionator, ending Enterprise’s six-and-half-year run atop the region.
TRGP will assume the frac crown when its 150 Mb/d Train 12 comes online in 1Q27. Train 13 follows in 1Q28, adding another 150 Mb/d as growing ethane export demand makes fractionation one of the most critical bottlenecks in the NGL value chain.
Targa currently ranks second in Mont Belvieu fractionation capacity, behind Enterprise’s 1,305 Mb/d and ahead of Energy Transfer’s (ET) 1,090 Mb/d. Its Mont Belvieu fleet includes 11 fractionation trains: five wholly owned and six majority-owned joint-venture assets.
Enterprise has held the top spot since 2Q20; Targa’s buildout is positioned to end that run, having added ~750 Mb/d of frac capacity in the hub since 4Q19.
East Daley has made the case for building additional fracs at Mont Belvieu to meet rising ethane ex… Chinese ethane demand keeps growing, reaching record levels and giving producers more incentive to recover ethane. Additional ethane shipping vessels will enter service in 2027 and 2028, easing export constraints and allowing more ethane volumes to move overseas.
In the NGL Hub Model, we expect ethane exports to ramp through 2027 as Gulf Coast dock and vessel availability expand. As exports increase, available fractionation capacity becomes the next limiting factor.
Targa isn’t the only operator expanding its Mont Belvieu footprint. Enterprise is building a 150 Mb/d Train 15 and plans to start the new unit in 1Q28, the company revealed in its 2Q26 earnings update. Train 15 will help Enterprise keep pace with Targa, but TRGP will remain the frac leader at Mont Belvieu for the foreseeable future.
Targa’s buildout points to where the next phase of NGL infrastructure investment is headed. With Permian NGL supply and export capacity expected to outpace fractionation growth, the market will need additional investment to support rising Y-grade volumes and relieve a growing bottleneck. – Tyler Scholes Tickers: EPD, ET, TRGP.
Exports:
NGL exports increased +1% W-o-W for the week ending July 31, with both ethane showing strong growth while LPG decreased.
LPG Exports fell +13.0% with EPD Neches River (-100%) seeing tremendous decline.
On the ethane side, total exports increased 58.0% W-o-W, driven by a 100% surge in EPD Neches River which exported nearly 400 mb/d or 100 mb/d above nameplate capacity.
Rigs:
The total US rig increased to 594 the week of August 1. Liquids-driven basins decreased to 453, down 2 rigs W-o-W.
- Anadarko (+1): Freedom Operating Company, LLC
- DJ (-1): Rangeview Resources Operating Co
- Permian (-2):
- Delaware (+1): Continental Resources
- Midland (-3): Ring Energy