$150M gas processing plant planned near Watford City
BISMARCK – Hess Midstream Partners and Targa Resources will build a $150 million gas processing plant near Watford City, as North Dakota produces record volumes of natural gas and approaches record high oil production.
“We are thrilled to welcome Hess’ significant investment, which underscores the company’s longstanding presence in North Dakota and commitment to our state,” Gov. Doug Burgum said in a news release issued Thursday. “This processing plant will provide much-needed capacity at a time when North Dakota’s oil production nears record levels and associated natural gas production continues to climb. It’s a huge step in the right direction toward continuing to meet our flaring reduction goals and encouraging responsible energy development and infrastructure investment.”
“The Hess-Targa gas plant is an important investment in the Bakken which will add value to our oil and gas industry, support the viability of operations throughout the region and help reduce flaring,” said Sen. John Hoeven. “Private investments in infrastructure are essential to growing our economy, but in order for these projects to happen, we need to have the right kind of business climate. This is exactly why we’re working to provide tax and regulatory relief.”
“Today’s announcement recognizes the exciting and still growing energy development in the Bakken,” said Sen. Heidi Heitkamp. “For years, I’ve said that increased natural gas production is another step toward promoting a successful and sustainable all-of-the-above energy strategy to grow North Dakota’s economy and move our nation towards greater energy security. As North Dakota’s oil and gas production continues to set new records or climb back towards all-time highs, we must invest in the energy infrastructure necessary to safely move our oil and gas, reduce flaring, and process or refine the resources in North Dakota.”
The Little Missouri Four gas plant will process 200 million cubic feet of gas per day at Targa’s existing Little Missouri facility in McKenzie County, Hess announced. Completion is expected in the fourth quarter of this year.
Natural gas production in North Dakota reached a record of nearly 2.1 billion cubic feet per day in November 2017, while daily oil production hit 1.19 million barrels per day, approaching the record high of 1.23 million barrels per day set in December 2014.
“We are thrilled to welcome Hess’ significant investment, which underscores the company’s longstanding presence in North Dakota and commitment to our state,” Burgum said. “This processing plant will provide much-needed capacity at a time when North Dakota’s oil production nears record levels and associated natural gas production continues to climb. It’s a huge step in the right direction toward continuing to meet our flaring reduction goals and encouraging responsible energy development and infrastructure investment.”
In addition to the anticipated $150 million in constructions costs for the gas plant, Hess Midstream and Hess Infrastructure Partners LP will invest about $100 million for new pipeline infrastructure to gather gas for Little Missouri Four, Hess said.
During his State of the State Address on Tuesday at Minot State University, Burgum said work is needed at the state and federal levels – including streamlining the burdensome process for siting pipelines on federal and tribal lands – to capture the increasing volume of natural gas as oil production grows.
“Bakken gas production has grown at a rate twice as fast as oil production in the last four years,” Burgum said. “Additional private-sector capital investment for gas capture and value-added processing is exactly what we need to simultaneously grow our economy and protect our environment.”