Hess opens expanded Tioga natural gas plant in US

Energy firm Hess has opened the expanded Tioga natural gas plant, more than doubling the operational capacity of the North Dakota facility.

The new plant is currently processing 120 million standard cubic feet of gas per day (MMSCFD) and has the capacity to process 250 MMSCFD, with a potential to upgrade to 300 MMSCFD. Prior to the expansion, the old plant processed around 100 MMSCFD.

The expansion also improves efficiency at the plant. Hess recently flared around 25% of its natural gas. With the expanded plant, the company now flares 15% to 20%, with a goal of reducing the number to 10% or below by 2017.

Hess chief executive officer John Hess said that the Tioga gas plant was constructed in 1954, just three years after the company drilled the very first oil well in the state of North Dakota.

"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," Hess added.

"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 has invested over $10bn in North Dakota since 2010, including over $1.5bn over the last two years on gas gathering infrastructure. The company currently has a 17-rig drilling programme with 2014 net production anticipated to average 80,000 to 90,000 barrels of oil equivalent a day.