The companies have formed a 50/50 joint venture for the project, which is expected to be completed in the fourth quarter of 2018.
The new gas processing plant will have a capacity of 200MMcf/d and will be built at Targa’s existing Little Missouri facility, located south of the Missouri River in McKenzie County.
Targa will be responsible for the construction and operations of the LM4 Plant.
The joint venture is supported by the significant dedicated acres of both Hess Midstream and Targa in the Bakken Basin.
Targa said: “The joint venture highlights Targa’s continued focus to align with attractive strategic partners in opportunities that are capital efficient and expected to drive greater incremental volumes over time.”
Hess Midstream’s stake in the joint venture will be through Hess TGP Operations, in which it has a controlling economic interest of 20%. The remaining 80% economic interest in Hess TGP is held by Hess Infrastructure Partners (HIP).
Hess Midstream and HIP have also committed to invest around $100m on new pipeline infrastructure to gather volumes to the LM4 gas processing plant.
Hess Midstream chief operating officer John Gatling said: “The Little Missouri Four Gas Processing Plant demonstrates our commitment to executing our strategy by providing additional Bakken basin processing capacity, which provides another layer of organic growth to meet our long-term targeted annual distribution per unit growth.
“By executing infrastructure projects that provide more optionality to producers, Hess Midstream expects to continue to capture additional Hess and third-party volumes, reinforcing the competitive advantage we enjoy from our strategically located infrastructure in the core of the Bakken.”
Hess Midstream said that its total processing capacity following the investments will move up to 350MMcf/d of gas in the Bakken Basin.
The midstream company also revealed that it retains the option to further expand capacity of the new gas processing plant by de-bottlenecking the Tioga Gas Plant in the future.
