ND Industrial Commission Approves $500M Backstop for WBI Gas Pipeline

The North Dakota Industrial Commission has unanimously voted to commit up to $500 million in state funds as a financial backstop for WBI Energy's planned Bakken East natural gas pipeline. The vote on Tuesday, April 28, finalizes a selection process that began last summer and provides a major boost to infrastructure aimed at moving more Bakken gas to market.

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 the pipeline to be in service by the end of 2030.

"This is going to be great in the short term, and it’s going to be great for the long term for North Dakota," said Gov. Kelly Armstrong, who chairs the three-member Industrial Commission, according to the North Dakota Monitor. Armstrong stated the legislative goal was both "financial incentive and promotional incentive," which he believes is being achieved.

The commitment fulfills a mandate from the 2025 Legislature, which authorized the financing to connect the western oil fields to the eastern half of the state. The Industrial Commission selected WBI Energy's two-phase project over a competing applicant last August. The state's support is structured as purchasing a portion of the pipeline's transport capacity.

Justin Kringstad, executive director of the North Dakota Pipeline Authority, was authorized to execute the agreement. He noted that after a closed-door briefing last month on negotiations with potential shippers and customers, the need for the state's commitment—described as "$50 million per year"—remained to advance the project, the North Dakota Monitor reported.

The project is critical for Bakken operators who face persistent challenges with natural gas capture due to a lack of pipeline takeaway capacity, particularly to markets within the state. Moving gas east could support new industrial customers and power generation, adding value to a product that is often flared when pipelines are full.

The Industrial Commission also includes Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley. The commission's vote marks the culmination of nearly a year of negotiations since WBI Energy's proposal was selected for the state guarantee.