ND gas pipeline project draws little interest

The director of North Dakota’s Pipeline Authority says Monday was the deadline for companies to apply to build a natural gas pipeline from the Bakken to eastern North Dakota.

No company applied.

The state has offered $150 million in “seed money” to a company that wants to build the pipeline.

Justin Kringstad says as Bakken gas production increases, this would be a way to help reduce flaring, as well as provide gas to industrial customers who are asking for the gas.

At one point, WBI Pipeline was interested – but backed away, because of uncertainties over customers.   WBI Energy, a subsidiary of Bismarck-based MDU Resources Group, also cited limited in-state demand and rising construction, labor and land-acquisition costs. MDU resources is North Dakota’s only Fortune 500 company.

WBI Energy owns and operates more than 3,700 miles of transmission and storage pipelines in the Dakotas, Minnesota, Montana and Wyoming.

Separately, one company has applied to extend gas service from the Viking Pipeline in Minnesota to Grand Forks.  Approval of that is pending.

NDPPR/AP/KNOX