North Dakota Eyes First Legacy Fund Investment in Pipeline Infrastructure

North Dakota could soon deploy $150 million from its Legacy Fund into home-state infrastructure, with a proposed Bakken natural gas pipeline leading potential investments.

North Dakota’s first in-state investment from its $13 billion Legacy Fund could go toward a new pipeline project designed to move natural gas out of the Bakken oil field, North Dakota Monitor reported.

The state has set aside $150 million for “asset-based projects” under the North Dakota Real Assets Fund, a program created to channel oil and gas revenue into infrastructure, agriculture, and real estate ventures. Investment manager GCM Grosvenor, hired to oversee the fund, is evaluating several proposals and expects to make initial decisions in early 2026.

Among the leading prospects is a natural gas pipeline proposed by Intensity Infrastructure Partners that would link McKenzie County to Rainbow Energy’s planned industrial park near the Coal Creek Station power plant in central North Dakota. The project would help supply natural gas for new power generation and potential data center developments tied to the industrial site.

GCM Grosvenor Managing Director Michael Rose told lawmakers the pipeline is among the most advanced projects under review and could generate steady long-term revenue once operational. “There’s no real risk here,” he said, as reported by North Dakota Monitor.

The investment firm plans to deploy the Legacy Fund money in increments of $10 million to $25 million, with an initial $50 million expected to be committed over the next three years. State officials emphasized that projects selected must already be near construction and rely on outside capital to maximize returns and attract additional investment into North Dakota.

If approved, the Intensity-Rainbow pipeline would mark a major milestone for the Legacy Fund’s effort to finance in-state energy infrastructure while maintaining strict independence from political influence over investment decisions.

Analysts See Long-Term Opportunity in Mature Bakken Play

North Dakota’s Bakken Shale has maintained oil output above 1 million barrels per day for more than a decade, but analysts say the basin is entering a new, more measured stage of development. The shale play remains rich in untapped reserves, with producers estimated to have recovered only about 10–15% of its oil so far. Industry watchers expect the next wave of growth to come from targeted efficiency improvements, enhanced recovery, and midstream expansion rather than rapid drilling gains.

Analysts from Moody’s Investors Service describe the Bakken as a mature but resilient play. Larger operators, including ConocoPhillips, Chevron, and Hess, are focusing on optimizing returns as oil prices and costs dictate. Enhanced oil recovery (EOR) techniques could extend the basin’s productive life, though Moody’s cautions that high implementation costs could limit their impact if prices soften.

READ MORE: North Dakota’s Bakken Outlook: Mature Play Poised for Next Phase of Growth

Gas production is also rising as a larger share of total output, signaling new infrastructure needs. North Dakota Pipeline Authority Director Justin Kringstad said the state’s gas-to-oil ratio surpassed three barrels of oil equivalent per barrel this year, with gas capture nearing 96%. That trend, combined with growing demand from power generation and data centers, is prompting companies like WBI Energy and Intensity Infrastructure Partners to propose new pipeline projects aimed at expanding takeaway capacity by 2030.

Researchers at the Energy and Environmental Research Center (EERC) believe improved well designs and longer laterals could unlock additional production. The state has launched a $25 million EOR program to fund pilot projects, while also exploring CO₂ capture partnerships to support long-term recovery.

“The Bakken still holds vast potential,” said EERC Vice President John Harju, adding that efficiency gains and new technology will be key to sustaining output.

Industry leaders remain confident in the region’s outlook. Ron Ness, CEO of the North Dakota Petroleum Council, said the basin continues to reward innovation and remains central to the state’s economy.

“The best place to find oil is where you already know there is oil,” Ness said. “With technology and investment, the Bakken’s next phase will keep fueling North Dakota’s growth for years to come.”