North Dakota LNG said they'd start construction at the Tioga liquefied natural gas processing plant this summer. First phase operations will produce 10,000 gallons of LNG per day. Phase two operations, scheduled for 2015, will bring production levels to more than 76,000 gallons per day.
The company has a contract with Hess. Corp. to receive residual gas for the Tioga feedstock.
Dalrymple said LNG from the facility will be used for commercial fuel.
"This is an exciting day for North Dakota," he said in a statement Wednesday.
The company's chief executive officer, Patrick Hughes, said the facility will give oil and gas operators in the Bakken oil region of the state access to a reliable alternative fuel source and reduce their operational expenses.