Hess Midstream LP said July 17 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 company said the safety of its workforce and the communities where it operates is its 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 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. Hess Midstream reaffirms its targeted 5% annual distribution per share growth rate through 2022. As a result of the deferral of the TGP turnaround, Hess Midstream now expects third quarter distribution coverage of approximately 1.1x.
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