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ND Commits $500M to WBI Energy's Bakken East Gas Pipeline - Bakken Wire
Pipeline & Infrastructure

ND Commits $500M to WBI Energy's Bakken East Gas Pipeline

State Industrial Commission finalizes financial backstop for project to move 1 Bcf/d from McKenzie County to eastern ND by 2030.

Bakken Wire Staff·🔆Midday Wire·

The North Dakota Industrial Commission has unanimously voted to commit up to $500 million in state funding to WBI Energy’s planned Bakken East natural gas pipeline, according to the North Dakota Monitor. Tuesday's vote finalizes a financial backstop for the project, which was selected over a competing applicant last summer.

The Bakken East pipeline is designed to move 1 billion cubic feet of natural gas per day from McKenzie County in the heart of the Bakken to central and eastern North Dakota. WBI Energy, a subsidiary of MDU Resources, expects to bring the pipeline online by the end of 2030.

Gov. Kelly Armstrong, chair of the three-member Industrial Commission, said the commission is excited the project is moving forward. “The goal of the Legislature was both financial incentive and promotional incentive. I think both of those things are occurring,” Armstrong said, according to the Monitor. “This is going to be great in the short term, and it’s going to be great for the long term for North Dakota.”

The 2025 Legislature authorized the up to $500 million financing package, which is being provided through the state purchasing a portion of the pipeline’s transport capacity. The Industrial Commission also includes Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley.

Justin Kringstad, executive director of the North Dakota Pipeline Authority, received authorization to execute the agreement. He noted that after a closed-door briefing last month on the status of negotiations with potential shippers and customers, the need for state support remained. “Those details were revealed, and the need remained for that $50 million per year from the state side to continue advancing this forward,” Kringstad said, according to the Monitor source.

The commitment provides a critical financial guarantee for infrastructure aimed at moving more Bakken natural gas to in-state markets. This helps address the region's gas capture challenges and provides a stable outlet for producers. The project moved forward after a formal process earlier this year where potential gas shippers and customers, such as power plants or large industrial users, could express interest.

The pipeline represents a major state-backed investment in midstream infrastructure to support the long-term viability of the Bakken oil field. By creating a dedicated route for gas to eastern North Dakota, the project aims to add value to a resource that has often been constrained by pipeline capacity.

Source

North Dakota Monitor (Bing News)

pipelinenatural gasinfrastructurewbi energymdu resourcesnorth dakota industrial commissionbakken eastmckenzie county

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