Hess Midstream forms JV to construct new gas processing plant in US

Hess Midstream Partners and Targa Resources have launched a 50/50 joint venture (JV) to construct a new gas processing plant, located south of the Missouri River in McKenzie County, North Dakota, US.

The new Little Missouri Four (LM4) gas plant will have a capacity of 200 million standard cubic feet per day (MMSCFD) and be located at Targa’s existing Little Missouri facility.

Under the terms of the JV, Targa will handle the construction and operation of LM4.

Hess Midstream chief operating officer John Gatling said: “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.

“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.”

Hess Midstream will hold its interest in the JV through Hess TGP Operations, in which it owns a 20% controlling economic interest.

The JV initiative allows Hess Midstream to have a total processing capacity of 350MMSCFD of gas in the Bakken.

To be constructed at a cost of $150m, LM4 is scheduled to be completed in the fourth quarter of this year.

Hess Midstream Partners LP owns, operates, develops and acquires midstream assets to provide services to Hess and third-party customers.

Its assets are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.