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Hess Corporation celebrated the recently completed expansion of the Tioga Gas Plant on 19 May. The company was joined by Governor Jack Dalrymple, Senator John Hoeven and a number of other government officials, to commemorate the expansion, which more than doubles the operational capacity of the facility.

The project is part of a more than US$ 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鈥檚 operations, from approximately 25% before the plant was shut down for the expansion project to 15 鈥� 20% today.

Growth in North Dakota

Hess Corporation CEO, John Hess, commented: 鈥淭he Tioga Gas Plant was built in 1954, just three years after we drilled the very first oil well in the state of North Dakota. Today, as one of the largest oil and gas producers in the Bakken, we are committed to responsible long-term growth in North Dakota and proud to contribute to the state鈥檚 infrastructure.鈥�

The plant is fully operational and is currently processing approximately 120 million ft³ of gas per day, with the expectation that through the combination of Hess and third-party gas it will soon process at least 250 million ft³/d with the potential to increase beyond 300 million ft³/d. Prior to expansion, the plant processed approximately 100 million ft³/d.

Comments

Hess added: 鈥淣orth 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.

鈥淪ince 2010, we have invested more than US$ 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鈥檚 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.鈥�

Governor Jack Dalrymple

鈥淚鈥檓 very excited about the opening of Hess Corporation鈥檚 expanded gas plant in Tioga. It means leadership for other companies that are taking advantage of the Bakken oil boom. It鈥檚 an example of what we need to see, which is more capturing of natural gas and more added value to the product. We are very grateful to Hess for showing the way.鈥�

US Senator John Hoeven

鈥淲e appreciate the tremendous investment Hess is making in North Dakota, which amounts to US$ 1.5 billion not only for this expansion, but also for four new gas gathering projects the company expects to complete by the end of the year. This new expansion more than doubles the plant鈥檚 capacity to produce natural gas, more than triples the amount of propane available to North Dakota and the region, and at the same time significantly reduces flaring in the oil patch. That鈥檚 a huge win for our state and our country.鈥�

US Senator Heidi Heitkamp

鈥淗ess has a long history in North Dakota, and it鈥檚 great news the company is continuing to invest in our state and build on its current facilities,鈥� said U.S. Senator Heidi Heitkamp. 鈥淲ith natural gas, North Dakota has an excellent opportunity to greatly expand its already incredible energy production and move toward fully using our vast natural resources. To make this a reality, we need to make significant infrastructure investments, which is why the Tioga Gas Plant expansion is so important. For years, we have wasted valuable natural gas through flaring, but with critical investments in processing capacity, like we are celebrating today, we can move closer toward energy independence.鈥�

Congressman Kevin Cramer

鈥淭he legacy of Hess in North Dakota is inseparable from the story of our booming economy. This expansion grows our portfolio of hydrocarbon and natural gas exports while reducing flaring, continuing their rich tradition of responsibly developing our state鈥檚 energy capabilities.鈥�

Bakken production

Hess Corporation has 640 000 net acres in the Bakken region. The company鈥檚 full year 2014 production forecast for the area 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鈥檚 growth strategy.

鈥淎s a leading operator in one of the best shale plays in the world, the Bakken will be the single biggest contributor to our production growth over the next five years. We expect that by 2018, we鈥檒l be producing 150 000 barrels of oil equivalent per day from the Bakken,鈥� explained Greg Hill, President and Chief Operating Officer of Exploration and Production for Hess.

Employees and contractors

Hill was proud to credit employees for the successful expansion project: 鈥淥ur successes here are made possible by the incredibly talented employees and contractors we have in place, who have worked tirelessly to bring this plant online safely.鈥�

At the peak of plant expansion, there were approximately 1400 people working at the site, with more than 5 million total man-hours accumulated over a two and a half year period. During the final 9 months to complete the project and commission the plant, these crews worked 2.3 million man hours without a single recordable injury.

Image courtesy of Hess Corporation.

Adapted from press release by

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