Midstream services firm Targa Resources and Stonepeak Infrastructure Partners are reportedly considering selling their stake in Gulf Coast Express natural gas pipeline in the US for more than $750m.

As part of the 25% stake sale plan, the two firms appointed an undisclosed investment bank, reported Reuters citing people familiar with the matter.

Stonepeak holds a stake of 80% in Targa GCX Pipeline, which owns the stake in the Gulf Coast Express Pipeline project. The remaining 20% interest is held by Targa Resources.

In 2018, Targa Resources signed an agreement development joint venture with investment vehicles affiliated with Stonepeak to finance the construction of Targa’s interests in three midstream assets, including the Gulf Coast Express pipeline.

The other projects included in the deal were Targa’s 20% interest in the Grand Prix pipeline and a 100% interest next fractionation train.

Commissioned in 2019, the 853km-long Gulf Coast Express project is designed to transport up to two billion cubic feet per day (bcfd) of natural gas.

It originates at the Waha Hub near Coyanosa, Texas, in the Permian Basin and terminates near Agua Dulce, Texas.

Other project partners include Altus Midstream, Kinder Morgan, and midstream master limited partnership DCP Midstream.

Pipeline companies look to divest stakes in their assets to raise cash for new projects while improving their financial position.

Earlier this year, Kinder Morgan and Brookfield Infrastructure Partners agreed to jointly sell a stake of 25% in Natural Gas Pipeline Company of America (NGPL) for $830m to a fund controlled by ArcLight Capital Partners.

NGPL, which comprises nearly 14,645km of pipeline, is said to be the largest transporter of natural gas into the Chicago-area market.