Grand Prix has commenced full operations, consistently flowing between 150,000 to 170,000 barrels per day (bbl/d) to Mont Belvieu, Targa Resources Corp. announced Aug. 8.
The expectation is for volumes to increase to approximately 200,000 bbl/d in September, then further increase over the balance of 2019 as short-term third party transportation arrangements continue to roll off and additional gathering and processing facilities come online. Grand Prix will provide some partial margin contribution in the third quarter, and as volumes continue to increase, the fourth quarter will be the first full quarter of margin contribution.
As a result of longer than anticipated time related to permitting, coupled with weather related construction delays during critical periods, Grand Prix came online about two months delayed and costs were approximately 10% higher than initial estimates from over two years ago.
Additionally, over the past year the company has experienced higher labor costs that have increased the cost of recently completed gas processing plant expansions and those underway.
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