Hess Completes Tioga Gas Plant Expansion

Share Print Bookmark    |    Wednesday,May 21,2014

Hess Corporation was joined today by Governor Jack Dalrymple, Senator John Hoeven and a host of other government officials to commemorate the recently completed expansion of the Tioga Gas Plant, which more than doubles the operational capacity of the facility.

The project is part of a more than $1.5 billion infrastructure investment made by Hess between 2012 and 2014 in North Dakota that has significantly increased production of propane, methane, butane and natural gasoline, and of ethane, a vital industrial product never before produced in the state.

The expansion also brings a substantial improvement in efficiency and significantly reduces the amount of natural gas flared at Hess’s operations, from about 25 percent before the plant was shut down for the expansion project to 15 to 20 percent today.

The plant is fully operational and is currently processing about 120 million standard cubic feet of gas per day (MMSCFD), with the expectation that through the combination of Hess and third-party gas it will soon process at least 250 MMSCFD with the potential to increase beyond 300 MMSCFD. Prior to expansion, the plant processed about 100 MMSCFD.

Hess said: “North Dakota leads the oil and gas industry because it is an attractive place to invest, with strong public-private partnerships, responsible regulation and a firm commitment to work hand-in-hand with the business community.

Since 2010, we have invested more than $10 billion in North Dakota, we currently have a 17 rig drilling program with 2014 net production expected to average 80,000 to 90,000 barrels of oil equivalent per day, and are proud to contribute to the state’s economic success. I would like to personally thank Governor Dalrymple, Senators Hoeven and Heitkamp, Rep. Cramer, and the state regulatory agencies that made these investments possible."

Hess Corporation has a world-class acreage position, with 640,000 net acres in the Bakken. The company’s full year 2014 production forecast for the Bakken is 80,000 to 90,000 barrels of oil equivalent per day. The gas plant expansion, as well as other recent infrastructure improvements made in North Dakota, is part of the company’s growth strategy.