Hess Midstream Partners has announced a major expansion of its Tioga plant to increase natural gas processing capacity in the region.
The $150 million expansion will increase the facilitys natural gas processing capacity by 150,000 mcf/day.
This is just a continuation of our strategy to develop great takeaway capacity and to support growing production not just for Hess Corporation but for other third parties., said Robert Young, senior manager of global communications and external affairs for Hess.
Hess is in the midst of several large infrastructure investments according to Young.
We have announced a number of infrastructure investments over the last year and a half, said Young. We had a record capital budget last year.
Hess expects construction on the expansion to commence in 2020, wrapping up in 2021. Once the Tioga expansion and the Little Missouri 4 plant is operational, Hess will have natural gas processing capacity of 500,000 mcf/day north of the Missouri River.
That makes us one of the biggest players there in offering takeaway capacity, said Young. For us its an exciting time.
Natural gas processing capacity is a significant need in North Dakota due to the gas capture targets set by the industrial commission. The statewide gas capture rate was 81 percent in February, resulting in 504,139 mcf of natural gas flared per day.
The current gas capture target is 88 percent and will increase to 91 percent by the time the expansion of the facility is completed.
For those who are very focused on reducing flaring, this provides a greater opportunity to get gas in the pipe, reducing flaring, said Young.
The expansion will add residue and y-grade liquids processing capacity to the existing full fractionation and ethane extraction capability of the current plant, according to a press release from Hess.
Hess does not yet have an estimate of how many jobs the expansion will generate.
Its a continuation of our strategy of building out infrastructure in the Bakken and in North Dakota both north and south of the river, said Young. Its a good economic story, its a great investment. Its important to support production growth in North Dakota.
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