Hess Midstream Partners LP said Thursday it plans to expand the Tioga Gas Processing Plant in the Bakken Shale by 150 MMcf/d, creating a 400 MMcf/d processing facility north of the Missouri River in North Dakota.
Since early last year, North Dakota's production statistics have consistently set records for average gas production, straining the ability of gathering and processing facilities to keep pace.
With the Tioga expansion, Hess expects to add residue and y-grade liquids processing capacity to the existing full fractionation and ethane extraction capability of the existing plant.
"The expansion is expected to be in service in mid-2021 and cost approximately $150 million gross, or $30 million net to Hess Midstream," management said.
Added Bakken production is driving the need for midstream infrastructure to keep up, according to Hess Midstream COO John Gatling. When the expansion projects are completed, Hess is expected to have 500 MMcf/d of processing capacity in the Bakken.
Gas takeaway capacity continues to exceed production levels, and oil takeaway capacity may face the same dilemma this year, according to the director of the North Dakota Pipeline Authority Justin Kringstad. The Hess expansion is important, he said.
“As production volumes continue to grow north of Lake Sakakawea, investments such as this will be critically important to address future gas capture goals,” he said.
Officials have consistently expressed concerns about the ability of operators to meet more stringent state-mandated goals.
Various midstream projects in the state call for an added 1.3 Bcf/d of processing capacity by the end of 2021, including the Tioga expansion. In the next three years, the industry is also expected to have invested more than $3.4 billion to address gas capture.