Adds shares, details from the conference call in paragraphs 2-8

By Katha Kalia

May 7 (Reuters) - Pipeline operator Targa Resources TRGP.N forecast full-year core profit above analysts' expectations on Thursday, helped by higher transport volumes of natural gas liquids through its system.

Shares of the company rose 1.3% in afternoon trading.

U.S. natural gas futures NGc1 averaged $9.54 per million British Thermal Units in the January-March quarter, up 9.5% from last year.

American pipeline companies are benefiting from strong oil and gas output in the Permian Basin, while uncertainty over shipping through the Strait of Hormuz has boosted demand for U.S.-sourced liquefied natural gas.

Targa said it expects to start operations on its Delaware Express NGL Pipeline expansion in May 2026.

The company is positioned to secure additional multi-year contracts, supported by rising supply and growing global demand for U.S. Gulf Coast LPG exports, CEO Matthew Meloy said.

A major LPG export expansion is expected to come online in the third quarter of 2027, he added on a post-earnings call.

The company also announced plans to build two new natural gas processing plants in the Permian Delaware basin both expected to start operations in the first quarter of 2028.

Targa said Permian gas takeaway capacity is expected to improve toward the end of 2026, supporting stronger Waha prices and benefiting both the company and its producers, with further tailwinds expected into 2027 and 2028.

Total quarterly natural gas sales were up 17.26% to 3.04 billion British thermal units per day (BBtu/d) from the previous year, while NGL pipeline transportation volumes rose about 20.5% to 1,016.8 thousand barrels per day (MBbl/d).

NGL sales rose to 1.30 billion Bbl/d from 1.19 billion bbl/d a year earlier.

NGLs are hydrocarbon liquids such as ethane, propane and butane, which are used as fuels for heating, refrigeration and gasoline blending, among others.

The Houston, Texas-based company projected 2026 adjusted core earnings to be between $5.7 billion and $5.9 billion, beating analysts' estimates of $5.5 billion, according to data compiled by LSEG.