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