The Dickinson Press is reporting:
A Denver-based company that unveiled plans last fall for a $4 billion petrochemical plant in North Dakota said Friday it has entered into a long-term ethane supply agreement with one of the biggest players in the state’s Oil Patch.
Badlands NGL’s said it has entered a “precedent agreement” with Continental Resources Inc. to supply the plant with ethane gas, a byproduct of natural gas processing that will be converted into polyethylene for use in a wide variety of plastic products.
Shane Goettle of the Bismarck-based firm Odney, a consultant on the project, said Badlands won’t be able to draw on Continental’s ethane until the plant is completed, hopefully in three to five years.For newbies, a reminder: the Bakken is an oily play, not a natural gas play.
Badlands has not identified a location yet for the North Dakota plant.
Gilliam also said in June that the company plans to build a second ethane plant in the continental United States.