WBI Energy Plans to Build Natural Gas Pipeline to Transport Bakken Natural Gas to Markets in Eastern
WBI Energy Plans to Build Natural Gas Pipeline to Transport Bakken Natural Gas to Markets in Eastern North Dakota, Minnesota and Wisconsin
Proposes $650 million to $700 million investment in 400-mile pipeline
BISMARCK, N.D.--(BUSINESS WIRE)-- WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc. (NYS: MDU) , announced plans today for a proposed natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company's pipeline system.
This project would increase pipeline takeaway capacity out of the Bakken to accommodate rapidly growing natural gas production in the region. "It's exciting to think that the proposed pipeline could provide a new transportation route to bring Bakken-produced natural gas directly to industrial customers and commercial and residential utility customers in eastern North Dakota," said David L. Goodin, president and CEO of MDU Resources. "Through interconnecting pipelines, the proposed pipeline could also serve Minnesota, Wisconsin and Midwest U.S. markets."
The pipeline has been initially designed to transport approximately 400 million cubic feet per day of natural gas and, depending on user commitments, could be expanded to more than 500 million cubic feet per day. The project investment is estimated to be between $650 million and $700 million.
The currently proposed route for the pipeline would stretch from approximately 20 miles southwest of Williston, N.D., to an interconnection with Viking Gas Transmission northeast of Moorhead, Minn. The majority of the proposed 400-mile system would be comprised of 24-inch diameter pipeline and the project would include two new compressor stations.
"Since 2010, we have invested over $150 million in energy development projects in North Dakota including our acquisition of midstream assets near Belfield and the Dakota Prairie Refining diesel plant currently under construction near Dickinson," said Steven L. Bietz, president and CEO of WBI Energy. "This project would be the largest single pipeline construction project in our company history. This project, combined with other recent and ongoing projects, would bring our total Bakken-related investment to nearly $1 billion."
Long-term capacity commitments on the proposed pipeline will be sought during an open season expected to begin in late summer. Following receipt of capacity commitments and necessary permits and regulatory approvals, construction on the new pipeline would begin in early 2016 with completion expected by late 2016.
EDITOR'S NOTE: View downloadable map showing the currently proposed pipeline route.
The information in this release includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this release, including statements by executive management of MDU Resources and WBI Energy, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include obtaining sufficient long-term natural gas supply commitments and receiving the necessary permits and regulatory approval in a timely manner; the capacity of the proposed pipeline; and, the schedule and costs to complete the project. For a discussion of other important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A - Risk Factors in MDU Resources' most recent Form 10-K and Form 10-Q.
About WBI Energy
WBI Energy, Inc. provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering, through regulated and nonregulated pipeline systems primarily in the Rocky Mountain and northern Great Plains regions of the United States. It also provides cathodic protection and other energy-related management services. WBI Energy, Inc. is an indirect subsidiary of MDU Resources Group, Inc. For more information about WBI Energy, Inc., visit the company's website at www.wbienergy.com .
About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, including regulated utilities and pipelines, exploration and production, and construction materials and services. For more information about MDU Resources, see the company's website at www.mdu.com or contact the Investor Relations Department at firstname.lastname@example.org .
MDU Resources Group, Inc.
Tim Rasmussen, operating company public relations manager, 701-530-1069
Phyllis A. Rittenbach, director - investor relations, 701-530-1057
KEYWORDS: United States North America North Dakota
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