New Hess partnership includes propane storage, transloading facility

Hess Corp. agreed to sell a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners, a global infrastructure investor, for cash consideration of $2.675 billion, the company announced.

Hess and Global Infrastructure Partners will create a midstream joint venture called Hess Infrastructure Partners. The venture will include the following midstream assets:

• Natural gas processing plant in Tioga, N.D.
• Rail loading terminal in Tioga and associated railcars
• Crude oil truck and pipeline terminal in Williams County, N.D.
• Propane storage cavern and rail and truck transloading facility in Mentor, Minn.
• Crude oil and natural gas gathering systems in North Dakota

John Hess, CEO of Hess, says the joint venture will be one of the largest midstream operators in the Bakken. He adds the 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 will likely take place in the third quarter, Hess says.