Thursday, May 9, 2019

WBI Energy -- MDU -- New Pipeline Proposed -- May 9, 2019

Link here. Huge "thank you" to a reader for spotting the story. Data points:
  • WBI Energy, a division of MDU Resources
  • the North Bakken Expansion Project
  • from: WBI's Tioga Compressor Station (Tioga, ND, east of Williston, same county)
  • to: North Border Pipeline south of Watford City (McKenzie County; south of the river)
  • 60 miles; 20-inch diameter
  • capacity: 200,000 mcfpd (about 35,000 boepd)
  • will file with FERC this month (May, 2019)
  • construction could begin in 2Q21
  • service date: November, 2021
  • $220 million
At one time, early in the Bakken boom, the rule of thumb seemed to be $1 million/mile of pipeline construction. This project would be $11 million/mile of pipeline construction. The fact that this will be "under the river" may increase the cost significantly, and I don't know if there are additional pump stations required or other infrastructure expansion that might be required.

For readers who are concerned this is "simply" another regional pipeline and won't help with the bigger issue of "takeaway" from the Bakken, this proposed 60-mile connector will connect with the Northern Border Pipeline, an international pipeline that links the midwestern US (Indiana and Illinois) with western Canada.

See this link
In addition to transporting Canadian sourced supply, Northern Border Pipeline receives and transports natural gas produced in the Williston and Powder River Basins in the United States and synthetic natural gas produced at the Dakota Gasification plant in North Dakota.

  • Northern Border Pipeline Company is a general partnership owned by TC PipeLines, LP, and ONEOK Partners, L.P.
  • Northern Border Pipeline is operated by: TransCanada Northern Border Inc.

Looking for long-term commitments.

Story here.

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