Hess midstream bolsters Bakken footprint through $60M acquisition

By Luke Geiver | February 26, 2019

Hess Midstream Partners is acquiring a neighboring Bakken infrastructure asset for $60 million. Through a deal with Summit Midstream Partners’, Hess Midstream will add Summit’s Tioga System. The system currently supplies a Hess owned midstream gathering plant.

“We are excited to extend our infrastructure footprint with the agreement to purchase the Tioga System’s crude oil and gas gathering assets,” John Gatling, COO.

The Tioga System, located in Williams County in western North Dakota, is complementary to Hess Midstream’s infrastructure, and is currently delivering volumes into Hess Midstream’s gathering system. The crude oil and gas gathering assets include approximately 73 miles of crude pipelines and 79 miles of gas pipelines. The water assets to be acquired include approximately 75 miles of produced water gathering pipelines.

Hess infrastructure partners agreed to acquire water gathering assets.

On the gathering side, Hess Midstream Partners has a 20 percent controlling economic interest in a system of gathering pipelines that support production growth in the Bakken. These pipelines compress and move crude oil and natural gas from remote wells to processing and storage facilities. The system can increase its capacity via installation of additional compression equipment.

For processing and storage, Hess Midstream Partners has a 20 percent controlling economic interest in a large, strategically located gas plant and 100 percent ownership of a propane storage terminal. And with terminaling and export, Hess Midstream Partners operates integrated, interconnected terminal facilities that provide flexibility for export. This includes a truck and pipeline terminal, a rail terminal and rail cars, and a header system that is under construction.