Gov. Jack Dalrymple and other state officials joined North Dakota LNG in announcing a new liquefied natural gas (LNG) production facility will go online in Tioga this summer.
The plant will be the first-to-market in the state and produce 10,000 gallons per day (gpd). A phase two facility is scheduled to be operational in the fourth quarter and capable of producing 66,000 gpd.
“This historic venture will allow NDLNG to quickly provide oil and gas operators in the Bakken and across North Dakota with a cost-effective and reliable source of alternative fuel,” said CEO Patrick Hughes of NDLNG and parent company Prairie Companies, during an event in the Capitol Building in Bismarck.
NDLNG targets the drilling, fracking and transportation sectors of the unconventional oil and gas industry and will help meet the need for a cost-effective power source by converting natural gas feedstock into value-added liquid fuels.
“This will play an important role in efforts to convert natural gas feedstock into value-added liquid fuels, foster more cost-effective unconventional shale development operations,” said Dalrymple.
Growing Demand, Opportunity
Currently, operators producing oil and gas from unconventional reservoirs in the Bakken face high fuel costs and environmental scrutiny for their use of diesel-powered equipment and flaring of natural gas generated by drilling activities. Therefore, significant demand exists for locally produced LNG derived from North Dakota’s abundant natural gas reserves.
NDLNG will also offer the state’s agricultural industry an alternative to propane. Leveraging LNG will garner farmers and ranchers lower operating costs, reduced emissions, and the ability to use a 100% locally produced fuel.
“Speaking on behalf of the operator community in North Dakota, this is the type of innovative, entrepreneurial thinking we need to help meet our flaring capture goals in the Bakken,” said President Ron Ness, of North Dakota Petroleum Council.
The new facility positions NDLNG to leverage its relationship with Prairie Companies’ growth-oriented businesses that support the oil and gas industry, including housing, hauling and water and fluids processing.
Project Management Contracts
Plum Energy, a developer of small-scale LNG value chains for industrial and transportation markets, will manage development of the project and initial operations of the LNG production facility. SST Process Solutions has been selected as the technology provider for the liquefaction equipment.
Hess Corporation has signed to deliver residue gas as a natural gas feedstock for NDLNG’s Tioga LNG liquefaction facility.