Hess, GIP form Bakken midstream JV

Hess Corporation said that it has agreed to sell a 50 percent interest in its Bakken shale midstream assets to Global Infrastructure Partners for $2.675 billion.

Hess and Global Infrastructure Partners will create a midstream joint venture – Hess Infrastructure Partners, the company said in a statement.

John Hess, Chief Executive Officer of Hess Corporation, said, “The joint venture with its strategically located assets will be one of the largest midstream operators in the Bakken. By capitalizing on the financial strength and midstream energy experience of Global Infrastructure Partners, the 2 joint venture will be in a strong position to fund future energy infrastructure investments and continue to grow its midstream business.”

The transaction is subject to customary closing conditions and is expected to be completed early in the third quarter of 2015.

The Hess midstream assets to be included in the joint venture are: natural gas processing plant in Tioga, North Dakota; rail loading terminal in Tioga and associated rail cars; crude oil truck and pipeline terminal in Williams County, North Dakota; propane storage cavern and rail and truck transloading facility in Mentor, Minnesota; and Crude oil and natural gas gathering systems in North Dakota.

LNG World News Staff; Image: Hess Corporation