Hess Midstream reduces 2021 budget

Jan. 25, 2021
Hess Midstream LP expects 2021 capital expenditures of $160 million, reflecting lower ongoing capital levels following the completion of major construction at the Tioga gas plant expansion in North Dakota.

Hess Midstream LP expects 2021 capital expenditures of $160 million, reflecting lower ongoing capital levels following the completion of major construction at the Tioga gas plant expansion in North Dakota. Some $140 million is allocated to expansion capital expenditures, with an estimated $20 million allocated to maintenance capital expenditures.

About $90 million of the 2021 capital budget is allocated to gas compression, with activities focused on the construction of two new greenfield compressor stations and associated pipeline infrastructure, which, when online in 2022 will initially provide an additional 64 MMcfd of gas compression capacity.

About $10 million is allocated for the completion of export tie-ins for the Tioga gas plant expansion, with about $40 million allocated to gathering system well connects to service Hess and third-party customers (OGJ Online, Apr. 26, 2019).

Maintenance capital is primarily in respect of the planned maintenance turnaround at the Tioga gas plant (OGJ Online, July 20, 2020).