After seeing better-than-expected growth in gathering volumes in the Permian Basin, Targa Resources Corp. is planning for another processing plant in the Midland sub-basin.

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The Houston-based midstreamer reported that system inlet volumes rose 7% sequentially in the third quarter, with total Permian inlet volumes reaching a record 2,952 MMcf/d. Management now expects volumes this year to exceed the top end of its previously disclosed 5-10% growth over 2020.

Discussing results earlier this month, CEO Matt Meloy said the 200 MMcf/d Heim cryogenic gas processing plant, which began full operations in September, is running near capacity. The 250 MMcf/d Legacy plant, meanwhile, remains on track to begin operations in 4Q2022.

“With robust activity levels expected to continue into...