WBI Energy's Bakken Natural Gas Pipeline Enters Open Season - Dakota Pipeline

WBI Dakota Pipeline
WBI Dakota Pipeline

The open season to secure commitments for WBI Energy's natural gas "Dakota Pipeline" began on January 30th.

WBI Energy, a subsidiary of MDU Resources, announced plans to build a 400 mile natural gas pipeline at an estimated cost between $650 - 700 million dollars in June 2013. Costs for the project will remain at $650 million, but only cover 375 miles, shaving off 25 miles of pipeline.

Natural Gas Pipelines will Alleviate Bakken Flaring

It may not come as a surprise to readers on this site, but according to the North Dakota Industrial Commission (NDIC), ~30% of natural gas produced in the state is flared.

Without effective infrastructure in-place, no other economically viable choice exists for companies targeting the oil rich Bakken Shale.

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 Goodin, CEO 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 on line, as well as more capacity for natural gas captured through industry’s efforts to reduce the flaring of this valuable resource.

WBI Expects Positive Response to Dakota Pipeline Open Season

WBI CEO, Steven Bietz, is optimistic about the "Dakota Pipeline", and indicated in a statement released by the company that there is viable interest in the marketplace.

This project provides access to markets in the Mid-Continent and Great Lakes regions... 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.

Pipeline Route and Construction

The proposed route for the natural gas pipeline will provide access to interconnections with other pipelines operated by Great Lakes Gas Transmission Limited Partnership, Viking Gas Transmission Company and possibly TransCanada Pipelines Limited. Interconnection points would be in Northwestern Minnesota.

According to the company, construction on the new pipeline could begin in 2016, with completion expected in 2017.

Read more at WBIEnergy.com