Hess Midstream Lp's Business Segments

Hess Midstream LP is a master limited partnership (MLP) that operates midstream infrastructure assets primarily in the Bakken shale play in North Dakota. It was formed in 2014 by Hess Corporation, a leading global independent energy company. Hess Midstream aims to provide reliable and efficient midstream services to support the growth of the oil and gas industry in the Bakken region.

The partnership owns and operates a diverse portfolio of midstream assets including gathering systems, processing plants, storage terminals, and transportation pipelines. These assets are strategically located in the heart of the Bakken production area, allowing for the efficient gathering, processing, and transportation of oil and gas resources.

Hess Midstream's gathering systems consist of pipelines that connect the wells to the processing plants. These systems are designed to collect and transport the produced crude oil and natural gas from the wellheads to the processing facilities. The partnership has an extensive network of gathering pipelines that cover a significant portion of the Bakken shale play.

The processing plants owned by Hess Midstream are critical in separating impurities and contaminants from the raw crude oil and natural gas. These facilities utilize advanced technologies to remove water, solids, and other unwanted compounds, resulting in a higher quality and marketable product. The processed oil and gas are then sent to storage terminals for further distribution.

Hess Midstream also operates storage terminals that provide a crucial link between production and distribution. These terminals have significant storage capacity for both crude oil and natural gas, allowing for the accumulation of resources during periods of high production and their delivery to market during times of high demand. The storage terminals are equipped with advanced monitoring and safety systems to ensure the integrity and security of the stored products.

In addition to gathering, processing, and storage, Hess Midstream LP has an extensive pipeline network for the transportation of oil and gas. These pipelines are strategically interconnected with other major pipelines, enabling the efficient movement of resources to key markets. The partnership actively monitors and maintains its pipeline infrastructure to ensure safe and reliable transportation of the products.

Hess Midstream is committed to environmental stewardship and implements various measures to minimize its impact on the environment. The partnership adheres to stringent safety and regulatory standards to prevent spills, leaks, and other incidents. It also invests in technologies and practices that promote energy efficiency and reduce emissions.

Overall, Hess Midstream LP plays a vital role in the Bakken shale play, providing essential midstream services to support the production and transportation of oil and gas resources. The partnership's extensive infrastructure network and commitment to operational excellence position it as a trusted partner for energy companies operating in the region.

Hess Midstream LP is a prominent player in the midstream sector of the oil and gas industry, providing a range of essential services that facilitate the transportation, processing, and storage of hydrocarbons. The company focuses primarily on the Bakken Shale region in North Dakota and engages in various activities that ensure the efficient movement of resources from production sites to end markets. Below is a detailed overview of the segments, products, and services offered by Hess Midstream LP:

Segments

1. Gathering
- Description: The gathering segment is crucial for collecting crude oil and natural gas from production sites before it is transported via pipeline. This includes the initial collection of resources from multiple wells.
- Key Services:
- Crude Oil Gathering: Collection of crude oil from production wells through a network of pipelines.
- Natural Gas Gathering: Transport of natural gas from wells to processing facilities.

2. Processing
- Description: Following the gathering phase, processing enhances the quality and marketability of natural gas and NGLs (Natural Gas Liquids) by removing impurities and separating the components.
- Key Services:
- Natural Gas Processing: Purification and component separation of natural gas, removing water, carbon dioxide, hydrogen sulfide, and other impurities.
- Fractionation: The process of separating mixed NGLs into individual components such as ethane, propane, butanes, and pentanes for commercial use.

3. Transportation
- Description: Transportation services enable the movement of gathered and processed hydrocarbons to refineries, processing plants, and distribution points.
- Key Services:
- Crude Oil Transportation: Pipeline infrastructure for moving crude oil to market hubs.
- Natural Gas Transportation: Pipelines that transport purified natural gas to distribution centers and consumers.
- NGL Transportation: Movement of purified NGLs to processing and distribution facilities.

4. Storage
- Description: The storage segment provides facilities for the temporary holding of crude oil, natural gas, and NGLs, ensuring that supplies meet demand fluctuations.
- Key Services:
- Crude Oil Storage: Aboveground storage tanks designed for short-term and long-term crude oil storage.
- Natural Gas Storage: Facilities for holding natural gas, often in underground reservoirs or pressurized tanks.
- NGL Storage: Storage solutions for NGLs to maintain supply stability and operational flexibility.

Products and Services

1. Crude Oil Services
- Overview: Hess Midstream offers comprehensive services for crude oil, including gathering, transportation, storage, and terminal services.
- Terminal Services: Facilities for loading and unloading crude oil from rail cars or trucks, as well as connections to pipelines for efficient transit.

2. Natural Gas Services
- Overview: The company specializes in gathering, processing, and transporting natural gas, ensuring it meets quality standards for market-ready products.
- Dedicated Processing Plants: Infrastructure that allows for increased capacity and efficiency in processing natural gas.

3. Natural Gas Liquid Services
- Overview: Hess Midstream also provides services related to the gathering, processing, and transportation of NGLs, supporting their market needs.
- Fractionation Facilities: Infrastructure for separating NGLs into sellable components, enhancing market value.

4. Research and Development
- Overview: The company invests in R&D to innovate midstream technologies for efficient resource handling and environmental sustainability.

5. Environmental and Regulatory Compliance
- Overview: Hess Midstream focuses on maintaining industry-leading practices in environmental stewardship and compliance with regulatory standards.

Competitive Advantages
- Strategic Location: Positioned in the prolific Bakken Shale region, providing access to rich resources.
- Integrated Services: Offers a comprehensive suite of midstream services, fostering efficiencies and reliability.
- Technological Expertise: Employing innovative technologies that enhance operational efficiencies and reduce environmental impacts.

Conclusion

Hess Midstream LP stands out in the industrial landscape with its robust offerings in gathering, processing, transportation, and storage of hydrocarbons. With a focus on delivering integrated midstream solutions, the company plays a critical role in ensuring the smooth functioning of the energy supply chain, particularly in the competitive Bakken Shale region.