Targa Resources Partners has signed a nonbinding memorandum of understanding (MOU) for development of a pipeline to transport y-grade natural gas liquids (NGL) from processing facilities in the Eagle Ford Shale to Mont Belvieu, TX, and a new fractionation train at the Targa-operated Cedar Bayou fractionation facility (CBF).

The MOU is with TexStar Midstream Services LP and TEAK Midstream LLC. CBF is owned by Cedar Bayou Fractionators LP, a venture that is 88% owned by Targa.

Targa said it expects to become an owner in the new y-grade pipeline, which would provide services from processing plants in the Eagle Ford area, including a TEAK gas plant and a TexStar gas plant, into Mont Belvieu. The pipeline would be designed to accommodate a future extension into the Permian Basin area of West Texas to provide y-grade transportation services to that growth region, Targa said.

CBF would be expected to expand by 100,000 b/d with commencement of operations expected in late 2012. The expansion would be an addition to the current 78,000 b/d expansion at CBF, which is expected to be operational in the second quarter. Upon the completion of both expansions, the y-grade fractionation capacity of CBF would be 353,000 b/d.

TEAK would be expected to install and operate a cryogenic processing plant with about 200 MMcf/d of capacity, and TexStar would be expected to install and operate a cryogenic processing plant with about 300 MMcf/d capacity. TEAK and TexStar would expand existing gas gathering systems that supply the processing plants, Targa said. The two plants would be expected to produce approximately 50,000 b/d of y-grade NGLs. The plants and the gathering systems behind them would serve 12 counties in the Eagle Ford area.