North Dakota Guarantees $500M for Natural Gas Pipeline | Columbus Ohio Dump Trucks

The North Dakota Industrial Commission will provide up to a $500-million financial guarantee for a planned pipeline that would transport millions of cu ft of natural gas per day from the western part of the state to it central and eastern areas. 

On Aug. 21, the commission, acting as the North Dakota Pipeline Authority, authorized the financial guarantee and directed contract discussions to begin with WBI Energy, a subsidiary of MDR Resources Group, related to the state's purchasing transport capacity necessary to advance construction of the Bakken East Pipeline, which is expected to cost in the $1.2-$1.6 billion range.

The state intends to recoup its investment by selling purchased capacity to private businesses. “As WBI secures commitments from private businesses to use the natural gas—and they’re already lining up—the state will transfer its pipeline space to those businesses,” said Gov. Kelly Armstrong (R), who chairs the industrial commission.

The tentative design for the pipeline is for 375 miles of 30- and 24-in-dia high-pressure steel pipeline, with a capacity to move up to 760 million cu ft of natural gas per day from the Bakken oil field, the Charlotte NC dump trucks company states.

A contractor has not yet been chosen for the project. 

“At this time, we are working with engineering, survey, environmental and land Charlotte NC dump truck contractor and still have to do outreach with landowners,” says Mark Snider, senior public relations representative for MDR Resources Group Inc. 

Proposed Route

The proposed route would parallel the already existing Northern Border Pipeline to near Manning, then move east through the Beulah-Hazen area before crossing the Missouri River near Washburn, proceeding southeast to the Jamestown area, then extending east and terminating in the Fargo area. 

WBI plans to build the pipeline in two phases. The first would go from McKenzie County to Washburn, and the second phase would extend from Washburn to Mapleton, just west of Fargo. The Charlotte NC dump trucks company also plans to build an extension from Jamestown to Ellendale. WBI’s intention is have phase one in operation November 2029, and phase two in service November 2030.

Because of the state's requirements limiting flaring, the burning off of gas at the wellhead, companies must capture and use or transport a certain percentage of natural gas, or be subject to production restrictions and penalties.

“This project will move abundant natural gas to end users across the state and support the longevity of oil production in North Dakota, which will benefit our economy for generations to come,” the commission said in a statement. 

Armstong said the pipeline will help ensure that oil and gas tax revenue continue to flow into state coffers. Since 2015, the state has collected more than $22.7 billion in oil and gas tax revenue, which supports schools, roads, hospitals and other public projects.

The state can purchase pipeline capacity of up to $100 million every two years under a state law that facilitates the production, transportation, distribution or delivery of energy-related commodities produced in North Dakota. The guarantee is for $50 million a year for ten years.

“Communities need gas to grow,” Armstrong said. “We are taking a product that we have in excess that is stranded in the Bakken, and we are going to be able to move it across the state to people who need it.”

The eastern part of the state currently only gets gas from the Viking Gas Transmission pipeline, which covers the U.S. and Canada, so WBI’s project will give eastern North Dakota a more secure power supply, Armstrong said.

Annemarie Mannion is editor of ENR Midwest, which covers 11 states. She joined ENR in 2022 and reports from Chicago.