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Regulatory

ND Industrial Commission Commits $500M to Bakken East Gas Pipeline

State financing for WBI Energy pipeline aims to move 1 Bcf/d from McKenzie County to eastern ND by 2030.

Bakken Wire StaffΒ·πŸŒ…Afternoon WireΒ·

The North Dakota Industrial Commission has unanimously voted to commit up to $500 million in state funding as a financial backstop for WBI Energy's planned Bakken East natural gas pipeline. The vote on Tuesday, April 28, finalizes negotiations that began last summer and advances a major infrastructure project intended to move gas from the heart of the Bakken to other markets within the state.

The Bakken East pipeline is designed to move 1 billion cubic feet of natural gas per day from McKenzie County in western North Dakota to central and eastern parts of the state. 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 project fulfills the legislature's goals. "The goal of the Legislature was both financial incentive and promotional incentive. I think both of those things are occurring," Armstrong said. "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 commission also includes Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley.

The 2025 Legislature authorized the up to $500 million financing mechanism for a pipeline to connect the western oil fields to eastern North Dakota. Last summer, the Industrial Commission selected WBI Energy's two-phase project over a competing applicant to receive the state's financial support, which is being provided through the state purchasing a portion of the pipeline's transport capacity.

Justin Kringstad, executive director of the North Dakota Pipeline Authority, who was authorized to execute the agreement, indicated the state's commitment remains crucial. Following a closed-door session last month where WBI Energy briefed the commission on project status and negotiations with potential shippers and customers, Kringstad said, "Those details were revealed, and the need remained for that $50 million per year from the state side to continue advancing this forward."

The project represents a significant state-led effort to build out natural gas takeaway capacity from the Bakken formation, where gas production has historically faced pipeline constraints. By securing a dedicated route to eastern North Dakota, the pipeline could provide a stable market for gas currently flared or waiting on pipeline space, benefiting operators and royalty owners in the region.

Source

North Dakota Monitor (via KFGO), Bismarck Tribune

north dakota industrial commissionwbi energynatural gas pipelineinfrastructureregulatorymdu resourcesbakken eastjustin kringstadkelly armstrong

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