Targa Resources Corp. is relocating a cryogenic natural gas processing plant to the Permian Basin from North Texas to boost what it said is much needed capacity in the region.

NGL production

The Houston-based midstream operator said the Longhorn plant would be moved to the Midland sub-basin in West Texas to accommodate increasing production. The 200 MMcf/d plant is to be renamed the Heim plant, after Targa’s founding COO, Michael Heim.

The plant is expected to begin operations in late 2021. Targa estimated the cost to relocate the plant is about $90 million. CEO Matthew Meloy said it would drive “attractive returns” resulting from capital savings combined with the incremental fee-based margin earned through the logistics and transportation assets.

“This type of spending is in line...