Targa Resources has agreed to acquire the remaining stake  in the Grand Prix NGL Pipeline in the Permian basin from Blackstone Energy Partners in an all-cash deal worth $1.05bn.

Under the definitive agreement, the midstream services provider will acquire the remaining 25% stake in the natural gas liquids (NGL) pipeline from Blackstone Energy Partners.

Targa Resources acquired a 75% stake in the pipeline project in 2022 when it repurchased stakes in its development company joint ventures from investment firm Stonepeak Partners.

The deal with Stonepeak also covered a 100% stake in the Train 6 fractionator in Mont Belvieu, Texas, and a 25% interest in the Gulf Coast Express Pipeline.

Targa Resources CEO Matt Meloy said: “The performance of our Grand Prix NGL Pipeline has exceeded expectations since it began full operations in the third quarter of 2019, integrating our leading NGL supply aggregation position in the Permian basin to key demand markets in Mont Belvieu and along the US Gulf Coast.

“Our business has strong momentum for 2023 and this acquisition further simplifies Targa while also increasing our fee-based margin and providing additional cash flow stability.”

Commissioned in 2019, the Grand Prix NGL pipeline is designed to transport up to one million barrels per day of NGLs to the NGL market hub at Mont Belvieu, Texas.

The pipeline transports NGLs from the gathering and processing positions of Targa Resources throughout the Permian basin, North Texas, and Southern Oklahoma to the company’s fractionation and storage complex located at Mont Belvieu.

The deal is anticipated to close in the first quarter of 2023, the publicly-listed midstream services provider said.