USA: Covid-19 Impact Maintenance Turnaround Delayed at Hess’ Tioga Gas Plant
The ongoing global pandemic of Covid-19 has forced Hess Midstream to delay its planned maintenance turnaround for its US-based Tioga Gas plant to 2021. However, facility construction for expanding the project is on schedule and will be completed by the year end.
Houston/USA – Hess Midstream has recently announced that the planned maintenance turnaround at the Tioga Gas Plant (TGP) originally scheduled for the third quarter of 2020 will be deferred until 2021 to ensure safe and timely execution in light of the Covid-19 pandemic. The safety of its workforce and the communities where it operates is the company’s top priority.
In addition to the turnaround, the TGP expansion project is well advanced, with facility construction expected to be completed as previously announced by the end of 2020. Incremental gas processing capacity is expected to be available in 2021 upon completion of the turnaround, during which the expansion and residue and natural gas liquid (NGL) takeaway pipelines will be tied in.
There is no change to Hess Midstream’s previously announced full year 2020 financial guidance and expected 25 % growth in Adjusted Ebitda in 2021, compared to full year 2020. The company reaffirms its targeted 5 % annual distribution per share growth rate through 2022. As a result of the deferral of the TGP turnaround, the firm now expects third quarter distribution coverage of approximately 1.1x.