Badlands NGL secures ethane supply by CLR for North Dakota PE project

Badlands NGL has entered into an agreement with Continental Resources (CLR), one of the largest and most important oil and gas producers in the Williston Basin, officials announced on Wednesday.

The agreement dedicates a long-term ethane supply to Badlands' North Dakota based project: a world-scale, NGL-sourced ethane gas to polyethylene (PE) manufacturing facility.

"We are very honored and pleased to announce that we have entered into this agreement with CLR," said William Jeffrey Gilliam, CEO of Badlands. "This is a major milestone for Badlands in that CLR is one of the largest leaseholders and producers in the Williston Basin. 

"Further, CLR has a long history of being a 'first mover,' as well as a long history of maximizing its resources to further enhance shareholder value," he added. "We believe that by creating an indigenous demand for ethane in North Dakota, large ethane producers like CLR will realize increased 'net back' for their ethane. It's a great vote of confidence for our project that a highly respected company like CLR will be a supplier."

The Badlands North Dakota PE facility was originally announced by North Dakota Governor Jack Dalrymple and the North Dakota Industrial Commission in October 2014. 

"During the past several weeks, Badlands has signed licensing agreements with key technology partners, and finalized other agreements,' its CEO said. "As a result of ongoing discussions with both North Dakota and Western Canadian NGL-sourced ethane feedstock suppliers, Badlands will increase the size of its planned North Dakota facility from 1.53 million tpy of PE to 2 million tpy (4.4 billion lb/year). 

"Badlands is looking forward to continuing NGL-sourced ethane feedstock discussions with both Canadian and North Dakota suppliers."