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

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

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

Bakken Wire Staff·☀️Morning Wire·

The North Dakota Industrial Commission has officially committed up to $500 million in state funding to WBI Energy's planned Bakken East natural gas pipeline. The commission's unanimous vote on Tuesday finalizes a financial backstop for the project, which aims to move 1 billion cubic feet of natural gas per day from McKenzie County to central and eastern North Dakota.

Gov. Kelly Armstrong, chair of the three-member Industrial Commission, said commissioners are 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 North Dakota 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 financing, which is being provided in the form of the state purchasing a portion of the pipeline's transport capacity. The Industrial Commission selected WBI Energy's two-phase project over a competing applicant last summer.

WBI Energy, a subsidiary of MDU Resources, expects to bring the pipeline online by the end of 2030. The commitment marks the final step in a process of negotiations that began last summer.

Justin Kringstad, executive director of the North Dakota Pipeline Authority, received authorization to execute the agreement on Tuesday. Kringstad noted that after a closed-door briefing last month on the project's status and negotiations with potential shippers and customers, "the need remained for that $50 million per year from the state side to continue advancing this forward."

The project is designed to connect the gas-rich oil fields in western North Dakota to markets and large industrial users in the eastern half of the state. Potential customers, such as power plants, had the opportunity to express interest in the project during a formal process earlier this year.

The Bakken formation is a major producer of associated natural gas, and increased pipeline capacity is critical for reducing flaring and monetizing the resource. This state-backed infrastructure investment aims to provide a long-term outlet for Bakken gas production.

The Industrial Commission also includes Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley. The commission's vote provides a significant financial guarantee to underpin the construction of the major new pipeline system.

Source

North Dakota Monitor via Bing News

pipelinenatural gasinfrastructurewbi energymdu resourcesnorth dakota industrial commissionfinancing

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