• LNG Production to Commence Summer 2014
• Hess Corporation Awarded Gas Supply Contract
• Plum Energy and SST Process Solutions, Inc. Awarded Project Management Contracts
• NDLNG Chief Executive Officer to Speak at Williston Basin Petroleum Conference
Bismarck, North Dakota (May 7, 2014) – North Dakota LNG, LLC (NDLNG), the newest member of Prairie Companies, LLC’s, portfolio of oil and gas service businesses, today joined North Dakota Governor Jack Dalrymple and other state officials at an event in the State Capitol Building to announce that it has started construction on a new 76,000 gallons per day (GPD) liquefied natural gas (LNG) processing facility in Tioga, North Dakota. NDLNG will target the drilling, fracking and transportation sectors of the unconventional oil and gas industry and will be the state’s first LNG producer to market. The facility will help meet the unconventional oil and gas industry’s need for cost-effective power sources and will play an important role in efforts to convert natural gas feedstock into value-added liquid fuels.
LNG Production Timeline
NDLNG’s first phase will begin operations in the summer of 2014 and produce 10,000 GPD of LNG. The facility’s second phase will start-up in early 2015 and increase total LNG production levels to more than 76,000 GPD.
“North Dakota LNG is proud to announce it will be the first LNG liquefaction plant in operation for North Dakota,” said Patrick Hughes, Chief Executive Officer, North Dakota LNG. “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, thereby reducing operating expenses, while also creating new markets for value-added natural gas fuel produced in the State.”
“This is an exciting day for North Dakota. NDLNG’s state-of-the-art processing facility 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 and support our nation’s desire to reduce its dependence on foreign fuel sources,” said Jack Dalrymple, Governor of North Dakota. “We appreciate NDLNG’s investment in our state’s energy industry and support them in their venture to move North Dakota’s rich natural gas resources to market”.
Growing Demand and Market Opportunity
Currently, operators producing oil and gas from unconventional reservoirs in the Bakken face high fuel costs and environmental scrutiny from their use of diesel-powered equipment and flaring of natural gas generated by their drilling activities. Therefore, significant demand exists for locally produced LNG derived from North Dakota’s abundant natural gas reserves that will help operators not only reduce energy costs but also lower carbon emissions.
NDLNG will also offer North Dakota’s agricultural industry an alternative fuel choice to propane. Leveraging LNG will garner farmers and ranchers lower operating costs, reduced emissions, and the ability to use a 100 percent 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…it’s a great idea,” said Ron Ness, President, North Dakota Petroleum Council.
Turnkey Fuel Solution
NDLNG has positioned itself as the first-in-the-market to provide a quick and cost-effective end-to-end solution to meet the demand for LNG. NDLNG will deliver significant benefits to its customers due to the company’s ability to:
- Provide a local alternative fuel source to customers in the Bakken;
- Employ a proven process able to produce a cost-effective and environmentally-friendly LNG fuel product; and
- Leverage its relationship with Prairie Companies’ three growth-oriented businesses that support the oil and gas industry, including housing, hauling, and water and fluids processing, giving NDLNG customers access to a completely integrated logistical system and further reducing transportation costs.
“Slawson Exploration Company supports the development of alternative fuel solutions such as LNG that will provide immediate cost relief for rig operations,” said Todd Slawson, President, Slawson Exploration Company, Inc. “We support NDLNG in this vital initiative and look forward to converting our rigs to utilize their LNG product.”
Project Management Contracts
Plum Energy, a pioneer and leader in the development of small-scale LNG value chains for industrial and transportation markets, will manage development of the project as well as initial operations of the LNG production facility. SST Process Solutions has been selected as the contractor to provide the liquefaction equipment.
“We are delighted to assist in bringing cleaner burning, lower cost and locally produced LNG into the North Dakota market,” said Kirt Montague, Chief Executive Officer, Plum Energy. “Not only will this project materially reduce fuel costs for operators and other businesses in the State, but it also will meaningfully lower levels of harmful emissions, while providing long-term, wage-scale jobs and employment opportunities in the region.”
NDLNG has entered into a contract with Hess Corporation (NYSE: HES) to receive residue gas as a natural gas feedstock for NDLNG’s Tioga LNG liquefaction facility.
Williston Basin Petroleum Conference NDLNG, its executives and project partners will have an active presence at the 22nd Annual Williston Basin Petroleum Conference taking place May 20-22, 2014 at the Bismarck Civic Center in Bismarck, ND. Hughes is scheduled to speak on the topic of LNG-powered rigs at 1:55 p.m. CT on May 20, 2014 and Prairie Companies and NDLNG will be exhibiting on the show floor in booths 607 and 608.
About North Dakota LNG
Headquartered in Tioga, North Dakota, North Dakota LNG (NDLNG) is a supplier of liquefied natural gas (LNG) targeting the drilling, fracking and transportation sectors of the unconventional oil and gas industry in the Bakken. A true end-to-end offering, NDLNG provides turn-key alternative fuel solutions for customers at any point in the LNG logistics supply chain, resulting in lower costs and reduced environmental impact. For more information, visit www.northdakotalng.com.