Hoeven, Hess Corp. Officials Celebrate Completion of Tioga Gas Plant Expansion

Senator Pushed for Approval of Vantage Pipeline, Which Carries Ethane to Alberta from Hess Gas Plant

TIOGA, N.D. – Senator John Hoeven and a host of industry and government officials today gathered to celebrate the Hess Corporation’s recently completed expansion of its Tioga Gas Plant, which more than doubles the operational capacity of the facility.

The senator pressed the U.S. State Department last year to grant a cross-border permit for the Vantage Pipeline, which will carry ethane from Hess’s Tioga Gas Plant to a petrochemical complex in Alberta, Canada, about 430 miles away. The $300 million pipeline project will have the capacity to transport 40,000-60,000 barrels of ethane per day, which will create jobs, help grow the economy and reduce flaring in western North Dakota.

“We appreciate the tremendous investment Hess is making in North Dakota, which amounts to $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,” Hoeven said. “This new expansion more than doubles the plant’s 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’s a huge win for our state and our country.”

“The Tioga Gas Plant was built in 1954, just three years after we drilled the very first oil well in the state of North Dakota,” said John Hess, Chief Executive Officer of Hess Corporation. “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’s infrastructure.”

The plant is fully operational and is currently processing about 120 million standard cubic feet of gas per day (MMSCFD), with the expectation that through the combination of Hess and third-party gas it will soon process at least 250 MMSCFD with the potential to increase beyond 300 MMSCFD. Prior to expansion, the plant processed about 100 MMSCFD.

“North 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,” Hess said. “Since 2010, we have invested more than $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’s 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.”

“As 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,” said Greg Hill, President and Chief Operating Officer of Exploration and Production for Hess. “We expect that by 2018, we’ll be producing 150,000 barrels of oil equivalent per day from the Bakken.” 

Hill was proud to credit employees for the successful expansion project. “Our 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,” Hill said.

At the peak of plant expansion, there were about 1,400 people working at the site, with more than 5 million total man-hours accumulated over about a 2 1/2 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.

Senator Hoeven has worked for more than a decade to help build North Dakota’s energy sector by building a strong legal, regulatory and tax environment to attract investment and encourage innovation.