Badlands NGL and Vinmar to monetize US shale gas
The Delaware-registered company Badlands NGL’s LLC (Badlands NGL) and Vinmar Projects (Vinmar) from Houston, Texas, signed a memorandum of understanding (MOU) to design, build, operate a world-scale polyethylene greenfield plant and merchant its production out of North Dakota shale gas basins of the Bakken Formation in the central north of USA.
Since 2001, Vinmar markets and distributes petrochemical products over the world.
To consolidate its competitive advantage, Vinmar secures its supply in petrochemical products by facilitating the feasibility studies of the projects and the definition of their commercial and financial viability.
This North Dakota Polyethylene project finds its source, as many other petrochemical greenfield complex, into the abundant US shale gas offering a long standing competitive feedstock to the local industry.
In this particular case, Badlands is even going further in using its natural gas liquids (NGL) expertise to gather and monetize the natural gas and associated condensate flared or wasted out of the unconventional resources developed along the border between North Dakota and Montana in the north of USA.
Badlands NGL North Dakota Polyethylene nears FEED
With this large hydrocarbon portfolio and its agreement with Vinmar, Badlands is targeting to supply the power generation and manufacturing sectors on the domestic market as well as to export to Asia and Europe on extremely competitive conditions.
Being located in north central USA, Badlands and Vinmar investigate all opportunities to use existing infrastructures to export North Dakota Polyethylene products both ways to west through the Pacific Northwest coast as well as from the Atlantic coast facilities.
– High density polyethylene (HDPE)
– Low density polyethylene (LDPE)
– Linear low density polyethylene (LLDPE)
For this project Badlands NGL is budgeting to invest $4 billion capital expenditure with a front end engineering and design (FEED) work that should start on 2015 for the first production of the North Dakota Polyethylene project by 2020.