Hess Midstream Partners Announces Plan to Expand Natural Gas Processing Capacity
Hess Corporation Logo header
SEARCH

Hess Midstream Partners Announces Plan to Expand Natural Gas Processing Capacity

  • Tioga_Gas_Plant__0311
04.25.2019

Hess Midstream Partners LP announced plans to expand natural gas processing capacity at the Tioga Gas Plant (Tioga) by 150 million cubic feet per day (MMcf/d) creating a total of 400 MMcf/d processing capacity north of the Missouri river. The 150 MMcf/d Tioga expansion is expected to add residue and y-grade liquids processing capacity to the existing full fractionation and ethane extraction capability of the current plant, and product takeaway has been secured. The expansion is expected to be in service in mid-2021 and cost approximately $150 million gross, or $30 million net to Hess Midstream.

“Continued Bakken growth from Hess and third parties has created additional demand for processing capacity north of the Missouri river,” said John Gatling, Chief Operating Officer of Hess Midstream. “We are efficiently expanding our service offering across our gathering, processing and terminaling systems. Following the completion of the Little Missouri 4 Gas Processing Plant and the Tioga expansion, Hess Midstream will have 500 MMcf/d of net processing capacity in the Bakken.”

“Consistent with our commitment to deliver stable and growing cash flows, the expansion will earn a competitive return through inclusion in our existing contract structure, providing continued visibility to our growth,” said Jonathan Stein, Chief Financial Officer of Hess Midstream. “We continue to primarily self-fund both our growing distributions and our expansion program, including this incremental investment, and have clear visibility to deliver our targeted 15% annual distribution growth per unit with at least a 1.1x coverage ratio.”

Full story
Related News
  • John Hess Discusses Oil Price Collapse, Company’s Unique Strengths on CNBC’s Fast Money

    CEO John Hess addressed the far-reaching impact of the oil price war on CNBC’s Fast Money on March 12, saying: “The economic problem we're facing today is a lot more than oil, and the oil price crash could be a catalyst that propels the world into an economic recession.”
    Full story
  • Hess Announces Significant Reduction to 2020 Capital and Exploratory Budget

    Hess Corporation today announced a revised $2.2 billion capital and exploratory budget for 2020, an $800 million reduction from the previous budget of $3.0 billion. The company also announced a new $1.0 billion three year term loan agreement. These actions further strengthen the company’s cash position and financial liquidity in response to the sharp decline in oil prices.
    Full story
  • Hess Corporation to Give $12.5 Million Gift to the Salk Institute to Accelerate Development of Plant-Based Carbon Capture and Storage

    Salk’s Harnessing Plants Initiative (HPI) will receive a $12.5 million gift from Hess Corporation to advance two projects to enhance plants’ natural ability to store carbon and mitigate the effects of climate change: the CRoPS program and the Coastal Plant Restoration program. These projects build on the Salk discovery of a crucial gene that will help the team develop plants with larger root systems capable of absorbing and storing potentially billions of tons of carbon per year from the atmosphere.
    Full story