Hess Triples Tioga Output | Russell T. Rudy Energy LLC
“Rigzone” reports that Hess Corporation has increased capacity at its Tioga, North Dakota, natural gas processing plant from 100 to 300 MCF per day. Obviously this will increase the state’s production of propane, butane and natural gasoline. However, it will also increase revenues from methane that was previously being flared, and will be the first facility in the state capable of extracting ethane for sale.
Hess drilled the first oil well in North Dakota in 1951 and three years later built the Tioga plant. The recent expansion and four new gas gathering projects represent a $1.5 billion investment over the last two years, and a long term commitment to the state.
The increased capacity will help reduce natural gas flaring in North Dakota and enhance revenues through the sale of the gas and natural gas liquids which will be recovered. Previously the state allowed operators to flare natural gas for a year and extensions were routinely granted. However, effective June 1, operators have to file a natural gas disposition plan with their application for a drilling permit, and more stringent regulations are expected on July 1.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/133601/Hess .
