Hess to sell interest in Bakken assets, including Tioga rail terminal

Hess Corp. announced last week that it agreed to sell a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners for $2.675 billion.

Hess and Global will create a midstream joint venture, Hess Infrastructure Partners, which will continue to pursue a proposed initial public offering of Hess Midstream LP, company officials said in a press release.

The transaction is subject to customary closing conditions and is expected to be completed in the third quarter. Assets to be included in the joint venture are a rail loading terminal in Tioga, N.D., which is on BNSF Railway Co.'s network; propane and storage cavern and rail and truck transloading facility in Mentor, Minn.; natural gas processing plant in Tioga; crude oil truck and pipeline terminal in Williams County, N.D.; and crude oil and natural gas gathering systems in North Dakota.

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