Proposed $3.2 Billion Bakken East Pipeline Draws Strong Shipper Interest
MDU Resources said its proposed Bakken East Pipeline received 1.4 billion cubic feet per day of shipper interest, with estimated project costs now reaching up to $3.2 billion.
(P&GJ) — MDU Resources said its proposed Bakken East Pipeline project drew strong shipper interest during a recent binding open season, prompting the company to increase projected capital investment estimates for the natural gas takeaway project.
The company said the open season generated approximately 1.4 billion cubic feet per day (Bcf/d) of submitted interest, with about 40% already secured under precedent agreements and additional negotiations ongoing. Based on the demand levels, MDU now estimates the project could require between $2.7 billion and $3.2 billion in capital investment.
MDU said a final investment decision has not yet been made and the company continues evaluating financing options, including partnerships and balance-sheet funding alternatives.
The proposed pipeline is designed to provide additional natural gas takeaway capacity from the Bakken region as production growth and industrial demand continue increasing across North Dakota. The company said the State of North Dakota has committed to a 10-year firm capacity agreement valued at roughly $50 million annually, underscoring the project’s strategic importance to regional infrastructure development.
MDU said Phase One of the proposed Bakken East Pipeline is targeted for completion in November 2029, with Phase Two expected to enter service in November 2030.
The company also said growing data center development activity within its service territory is contributing to long-term demand growth expectations for natural gas infrastructure.
In addition to the Bakken East project, MDU continues advancing several other pipeline initiatives, including the proposed Line Section 32 Expansion Project in North Dakota and the Minot Industrial Project, a proposed 90-mile pipeline intended to support future industrial growth near Minot.
MDU’s pipeline business operates more than 3,800 miles of natural gas pipeline and storage infrastructure across the Northern Plains.