ND to alter natural gas incentives

The North Dakota legislature is looking at a new way to incentivize a natural gas pipeline to bring Bakken gas to central and eastern North Dakota.

In 2021 the legislature set aside $150 million in federal money from the American Rescue Plan Act as seed money for a pipeline. But even though there was interest there were no takers.

Senate Appropriations Committee Chairman Brad Bekkedahl says in the Industrial Commission budget bill the state will try a new program. He says instead of subsidizing the building of the pipeline, the state would subsidize the sale of the product at the end of the pipeline.  “The companies that use pipelines build them based on sales and obligations at the end point.  We didn’t have enough contract sales at the end point in eastern North Dakota to build the pipeline even with the $150,ooo million dollar subsidy.”

Bekkedahl says it means less money up front for the state and better certainty for the pipeline builders. He says the funding source for this program has not yet been identified. That’s because the ARPA money has to be spent by 2026.

Bekkedahl says that $150 million will go toward other projects – and he says the legislature is looking at $80 million of that going to the State Interoperable Radio Network.

NDPPR/KNOX