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

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

The state Industrial Commission's final approval provides a financial backstop for the 1 Bcf/day project aimed at moving gas east by 2030.

Bakken Wire Staff·🌅Afternoon Wire·

The North Dakota Industrial Commission voted unanimously Tuesday to commit up to $500 million in state financing to WBI Energy's planned Bakken East natural gas pipeline, according to the North Dakota Monitor. The vote finalizes a state-backed financial guarantee for the project, which is designed to move 1 billion cubic feet of natural gas per day from the core of the Bakken oil field to eastern North Dakota.

Gov. Kelly Armstrong, who chairs the three-member commission, said the move 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 commitment provides a financial backstop for the pipeline, a subsidiary of MDU Resources, with the state financing provided through the purchase of a portion of the pipeline's transport capacity. The 2025 Legislature authorized the $500 million for a pipeline to connect the western oil fields to the eastern part of the state, and the Industrial Commission selected WBI Energy's two-phase project for the guarantee last summer.

Justin Kringstad, executive director of the North Dakota Pipeline Authority, said details discussed in a closed-door session last month confirmed the continued need for state support. "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. He received authorization to execute the final agreement with WBI Energy on Tuesday.

The Bakken East pipeline is central to the state's strategy to better utilize natural gas produced alongside oil in the Bakken formation. WBI Energy expects to bring the pipeline online by the end of 2030. The company has been negotiating with potential shippers and customers, such as power plants or large industrial users, who expressed interest in the project during a formal process earlier this year.

The approval comes as North Dakota marks 75 years since the discovery of oil near Tioga on April 4, 1951, which launched the state's modern energy industry, according to AOL News. The state's commitment to major pipeline infrastructure underscores the continued central role of midstream development in supporting Bakken output and economic growth for decades to come.

For Bakken operators, the project promises a crucial new outlet for natural gas, helping to reduce flaring and capture more value from production. The state's direct financial involvement de-risks the large-scale infrastructure needed to move resources to new markets within North Dakota.

Source

North Dakota Monitor, AOL News

pipelinenatural gaswbi energymdu resourcesnorth dakota industrial commissionbakkeninfrastructurefinancing

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