MDU Resources Group said that its subsidiary WBI Energy will undertake the $220m North Bakken Expansion Project, a pipeline project designed to deliver 200 million cubic feet per day of natural gas transportation capacity in North Dakota.
The North Bakken Expansion Project will involve constriction of nearly 107.8km of new pipeline, compression and two associated compressor facilities.
The new pipeline infrastructure will source natural gas from core Bakken production sites in western North Dakota and deliver it to an interconnection point with the Northern Border Pipeline.
Subject to regulatory and environmental permits and finalization of transportation agreements with customers, the pipeline project is anticipated to break ground in early 2021 to target completion in the same year.
The 20-inch pipeline is planned to begin near Tioga in North Dakota, and extend to a new connection with the Northern Border Pipeline in McKenzie County in the same state.
WBI Energy conducted an open season to solicit customer interest in capacity on the North Bakken Expansion Project, following which it is said to have secured long-term transportation commitments from certain natural gas production, gathering and processing companies.
WBI Energy president and CEO Trevor Hastings said: “We are excited to grow our pipeline system to meet the natural gas transportation needs in the Bakken region.
“We are working with our customers to meet these needs as the industry focuses on reducing natural gas flaring while growing production volumes.”
MDU Resources said that the final project design, route and cost of the North Bakken Expansion Project will be subject to customer demand and final agreements, and also the engagement of other project stakeholders via the pre-filing process.
The company added that the project could be expanded to offer transportation capacity of up to 375 million cubic feet per day depending on customer demand.
MDU Resources revealed that its subsidiary intends to use the Federal Energy Regulatory Commission’s National Environmental Policy Act pre-filing process for the North Bakken Expansion Project. In this regard, WBI Energy will commence the process during the later part of the first quarter of this year.
WBI Energy offers natural gas transportation, underground storage and gathering services via pipeline systems and processing facilities mainly in the Rocky Mountain and northern Great Plains regions.