Badlands NGL along with strategic partners Tecnicas Reunidas and Vinmar Projects, will build a $4 billion polyethylene manufacturing facility in North Dakota. The facility will be the largest private equity investment to date in North Dakota.
Polyethylene manufacturing is the process of converting ethane, a byproduct of natural gas processing in to plastic. The resulting polyethylene can be used to make a variety of consumer products. Converting ethane can also result in a reduction of the number of flares at energy development sites and underlines the rapid development of such sites in North Dakota, as the state reaps the benefits of the fracking revolution.
The facility will cost $4 billion to build and will be able to produce 1.5 million metric tons of polyethylene, or 3.3 billion pounds annually, employing 500 people. The project is expected to take three years to complete.
Principals at newly formed Bandlands NGL come from the polyolefin development industry.
Badlands intends to market the majority of the polyethylene products domestically, with additional limited marketing in Asia, South America and Europe. The firm is working with two strategic partners – Tecnicas Reunidas based in Spain, and Vinmar Projects of Houston, Texas. Tecnicas Reunidas has already developed approximately 100 petrochemical plants worldwide and will be tasked with preliminary engineering analysis for Badlands. Vinmar Projects focuses on the marketing and business development side of petrochemicals, and will support overall project financing for the facility.
“This project is fully aligned with our goals to reduce flaring, add value to our energy resources right here in North Dakota and create diverse job opportunities across the state,” Governor Dalrymple said in a statement.
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