Global pipeline construction is experiencing a notable surge, with 12,300 kilometres of new pipelines currently under construction and a further 20,100 kilometres proposed worldwide, according to information from Global Energy Monitor cited by The Economist. These additions represent nearly a 10% increase over the 350,000 kilometres of pipelines currently in operation.
This growth comes as energy companies and governments commission multibillion-dollar projects to facilitate the movement of oil and gas. In mid-August, Targa Resources saw its shares rise by 10% following the announcement of a 20-year midstream agreement with ExxonMobil. This deal involves Targa building and operating a portfolio of energy infrastructure assets for ExxonMobil.
As part of the agreement, Targa has announced plans for three new natural-gas processing plants in the Permian Delaware region: Wrangler, Ranger, and Ranger II. These plants will have a combined capacity of approximately 825 million cubic feet per day and are expected to be operational in the first half of 2028. Targa also plans to construct a new 70-mile natural-gas pipeline, Bull Run II, supported by take-or-pay commitments.
To meet these commitments, Targa has increased its expected capital spending for the year from $4.5 billion to $5 billion. The company spent $2.1 billion on growth and maintenance capital in the first half of 2026, a 23% increase from the same period in 2025.