Thursday, January 25, 2018

Unless Something Bigger Happens In The Next 48 Hours, This Is The Biggest Bakken Story Of The Week -- January 25, 2018

Link here to Rigzone.
Hess Midstream Partners LP and Targa Resources Corp. have formed a 50/50 joint venture to build a new 200 million standard cubic feet per day dry gas processing plant near Targa’s existing Little Missouri facility in McKenzie County, North Dakota, Hess Midstream announced Thursday.

“The Little Missouri Four Gas Processing Plant demonstrates our commitment to executing our strategy by providing additional Bakken basin processing capacity, which provides another layer of organic growth to meet our long-term targeted annual distribution per unit growth,” John Gatling, Hess Midstream’s chief operating officer, said in a company statement. “By executing infrastructure projects that provide more optionality to producers, Hess Midstream expects to continue to capture additional Hess and third-party volumes, reinforcing the competitive advantage we enjoy from our strategically located infrastructure in the core of the Bakken.”

According to Hess Midstream, Targa will manage construction of the approximately $150 million Little Missouri Four (LM4) plant and operate the facility. Hess TGP Operations L.P. – owned on a 20/80 basis by Hess Midstream and Hess Infrastructure Partners LP (HIP), respectively – will hold Hess Midstream’s 50-percent stake in the gas plant, the company added. In addition to contributing a total of $75 million to the plant’s construction, Hess Midstream said the two Hess units will invest approximately $100 million toward new pipeline infrastructure to gather volumes to LM4.
Earlier this was posted:
Link here at The Bismarck Tribune. Data points:
  • Hess Midstream Partners
  • $150 million natural gas processing plant
  • partner: Targa Resources Corp
  • name: Little Missouri Four plan
  • capacity: 200 million cf/d
  • location: near Targa's existing facility south of the Missouri River near Watford City
  • completion date: by the end of this year
  • natural gas production in ND set a record in November, 2017: 2.1 billion cubic feet/day
  • flaring: still at 14%
  • one of four natural gas processing plants in the planning or construction stages in North Dakota
  • the four projects would add an additional 615 million cubic feet per day of additional processing capacity
  • ONEOK: to expand it Bear Creek natural gas processing plant north of Killdeer; will expand from a capacity of 80 million to 175 million cubic feet per day
  • Crestwood Equity Partners: expand the Arrow Bear Den gas processing plant near Watford City, adding another 120 million cfpd
  • Oasis Wild Basin processing plant it expanding to process 345 million cfpd in McKenzie CountyN
Note: if that is not an error in reporting, it seems that the Oasis expansion to 345 million cfpd is a huge addition; prior it was 80 at Plant 1; and 150 at Plant 2.
Note: it looks like a race among Hess, ONEOK and, Oasis to see who will have bragging rights to most natural gas processing capacity in the state.
Note: for newbies, this is a huge, huge story. The Bakken is an "oily" story, an "oily" play; no one expected this much natural gas activity back in 2007.

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