WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc. plans to construct a 375-mile natural gas pipeline stretching from western North Dakota to northwestern Minnesota and an open season seeking capacity commitments has begun.
Rapidly growing natural gas production in western North Dakota, coupled with increasing demand from industrial, commercial and residential markets in eastern North Dakota, Minnesota, Wisconsin, Michigan and other Midwest markets, has generated strong interest in the Dakota Pipeline from potential shippers.
“This project provides access to markets in the Mid-Continent and Great Lakes regions of the U.S. We have been encouraged by the interest the marketplace has shown in this project to date,” said Steven L. Bietz, president and CEO of WBI Energy.
The proposed route will provide access to interconnections with pipelines operated by Great Lakes Gas Transmission Limited Partnership, Viking Gas Transmission Company and, potentially TransCanada Pipelines Limited. The interconnections would be at a point in northwestern Minnesota.
The Dakota Pipeline is designed to initially transport 400 MMcf/d of natural gas and, depending on user commitments, could be expanded to more than 500 MMcf/d. The investment for the proposed pipeline system is estimated at $650 million. The majority of the new pipeline would be comprised of 24-inch pipeline and includes two new compressor stations. Construction could begin in 2016 with completion in 2017.