MDU Subsidiary To Invest $700 Million In Natural Gas Pipeline

Updates

Later, 11:13 pm: see first comment. The pipeline will also supply natural gas to the fertilizer plant(s) going up in the eastern part of North Dakota. 

Original Post

Through a press release, MDU is reporting:

WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc., announced plans today for a proposed natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company’s pipeline system.

This project would increase pipeline takeaway capacity out of the Bakken to accommodate rapidly growing natural gas production in the region.

“It’s exciting to think that the proposed pipeline could provide a new transportation route to bring Bakken-produced natural gas directly to industrial customers and commercial and residential utility customers in eastern North Dakota,” said David L. Goodin, president and CEO of MDU Resources.

“Through interconnecting pipelines, the proposed pipeline could also serve Minnesota, Wisconsin and Midwest U.S. markets.”

The pipeline has been initially designed to transport approximately 400 million cubic feet per day of natural gas and, depending on user commitments, could be expanded to more than 500 million cubic feet per day. The project investment is estimated to be between $650 million and $700 million. 

Several comments:

• when I first started the blog, I was not interested in natural gas in the Bakken; ONEOK changed everything
• the Bakken is considered an oil play; natural gas was originally thought to be about 3% of total economic value of the Bakken oil/gas prospect
• at $700 million for the project, MDU obviously feels the Bakken is going to be around for awhile

And a huge "thank you" to Don for alerting me to the press release. I had not yet seen it.

This is a PDF of the proposed route of this new natural gas pipeline (link broken -- first noted August 3, 2017).