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NDIC Commits $500 Million to Bakken East Gas Pipeline - Bakken Wire
Regulatory

NDIC Commits $500 Million to Bakken East Gas Pipeline

State's financial backstop finalized for WBI Energy project aiming to move 1 billion cubic feet daily by 2030.

Bakken Wire Staff·☀️Morning Wire·

The North Dakota Industrial Commission (NDIC) unanimously voted Tuesday 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 finalizes a selection process that began last summer and provides the state-backed incentive authorized by the 2025 Legislature, according to the North Dakota Monitor.

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

Governor Kelly Armstrong, chair of the three-member commission, said the project represents both a financial and promotional incentive for the state. "This is going to be great in the short term, and it's going to be great for the long term for North Dakota," Armstrong said during the meeting, according to the source.

The funding mechanism involves the state purchasing a portion of the pipeline's transport capacity. Justin Kringstad, executive director of the North Dakota Pipeline Authority, stated that details discussed in a closed-door session last month revealed "the need remained for that $50 million per year from the state side to continue advancing this forward." Kringstad received authorization to execute the final agreement on Tuesday.

The commitment aims to address the persistent challenge of moving natural gas produced in western North Dakota to markets and industrial users in the eastern part of the state. For Bakken operators, improved gas takeaway capacity can help mitigate flaring and provide a more reliable revenue stream from gas production.

The NDIC, which includes Armstrong, Agriculture Commissioner Doug Goehring, and Attorney General Drew Wrigley, selected WBI Energy's two-phase project over a competing applicant last August. The company has since been negotiating agreements with potential shippers and customers who expressed interest during a formal process earlier this year.

Source

North Dakota Monitor (via Bing News)

natural gasinfrastructureregulationndicwbi energypipeline

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