Planning for WBI Energy’s Dakota Pipeline is underway

MDU Resources Group’s pipeline and energy services subsidiary, WBI Energy Inc., has announced that planning for a 375 mile natural gas pipeline is underway and an open season seeking capacity commitments has begun. The pipeline is due to run from western North Dakota to northwestern Minnesota.

“The Dakota Pipeline offers another avenue to move Bakken-produced natural gas out of the area and complements our other ongoing activities to build connections to several natural gas processing facilities,” said David L. Goodin, President and Chief Executive Officer of MDU Resources. “The increase in natural gas pipeline capacity out of the region will provide additional transportation opportunities for new production as it comes online, as well as more capacity for natural gas captured through the industry’s efforts to reduce the flaring of this valuable resource.”

Meeting demand for natural gas

Jack Dalrymple, the Governor of North Dakota, has been concerned about the amount of natural gas flaring in the state and has asked an industry task force to provide recommendations. “We are committed to working with WBI Energy and the entire energy industry so that we continue to reduce flaring, add value to our energy resources and help meet the nation’s energy needs,” said Dalrymple. “This pipeline is part of the solution and I commend MDU Resources and WBI Energy for their commitment to North Dakota and to the responsible development of our energy resources.”

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 across the region.

Open season

“This project provides access to markets in the Mid-Continent and Great Lakes regions of the US. We have been encouraged by the interest the marketplace has shown in this project to date,” said Steven L. Bietz, President and Chief Executive Officer of WBI Energy. “Through the open season process, we intend to secure capacity commitments for the Dakota Pipeline and begin the process for obtaining the necessary permits and regulatory approvals.” An open season is pipeline industry terminology for a time period when interested shippers make binding bids for firm transportation capacity on the new pipeline.

Pipeline installation

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 has been designed to initially transport approximately 400 million ft³/d of natural gas and, depending on user commitments, could be expanded to more than 500 million ft³/d. At a transport volume of 400 million ft³/d, the pipeline will carry enough natural gas annually to provide the needs of 1.3 million homes.

The project investment for the proposed 375 mile pipeline system is estimated to be approximately US$ 650 million. The majority of the new pipeline would be comprised of 24 in. diameter pipeline and includes two new compressor stations.

Following receipt of the contractual capacity commitments from the open season and the granting of the necessary permits and regulatory approvals, construction on the new pipeline could begin in 2016 with completion expected in 2017.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/31012014/planning_for_wbi_energys_dakota_pipeline_is_underway_64/