Gov. Jack Dalrymple today joined MDU Resources and WBI Energy in announcing the companies are moving forward with plans to build a natural gas pipeline that would increase North Dakota's take-away capacity and further reduce flaring.
WBI Energy Inc., a subsidiary of MDU Resources Group, Inc., plans to build a 375-mile pipeline that would transport Bakken-produced natural gas from western North Dakota to industrial, commercial and residential customers in eastern North Dakota as well as markets throughout the Midwest.
"We are committed to working with WBI Energy and the entire energy industry so that we continue to reduce flaring, add value to our energy resources and help meet the nation's energy needs," Dalrymple said. "This pipeline is part of the solution and I commend MDU Resources and WBI Energy for their commitment to North Dakota and to the responsible development of our energy resources."
The Dakota Pipeline has been designed to transport about 400 million cubic feet of natural gas per day, but could be expanded based on shipper demand to move about 500 million cubic feet per day. WBI Energy plans to invest $650 million to build the 24-inch Dakota Pipeline.
WBI Energy originally proposed running the pipeline through central North Dakota to an interconnection near Moorhead, Minn. Following market feedback, company officials revised the route and moved the eastern endpoint farther north to access interconnections with three pipelines: Great Lakes Gas Transmission Company, Viking Gas Transmission Company and, potentially, TransCanada. The pipelines would connect in northwestern Minnesota, near the natural gas trading hub known as Emerson.
WBI Energy officials have begun accepting long-term service commitments from natural gas producers. Provided that sufficient long-term commitments are received and regulatory and environmental permits are secured, construction on the pipeline could begin in late 2016 and be completed the following year.