WorldWide Drilling Resource

32 JUNE 2014 WorldWide Drilling Resource ® WBI Energy Moves Forward with Dakota Pipeline Adapted from Information by WBI Energy, Inc. WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc., announced plan- ning for a 375-mile natural gas pipeline stretching from western North Dakota to northwestern Minnesota is in progress, and an open season seeking capacity commitments has begun. “The Dakota Pipeline offers anoth- er avenue to move Bakken-produced natural gas out of the area and comple- ments our other ongoing activities to build connections to several natural gas processing facilities,” said David L. Goodin, president and 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 capac- ity for natural gas captured through in- dustry’s efforts to reduce the flaring of this valuable resource.” Nor th Dakota Governor Jack Dalrymple was concerned about the amount of natural gas flaring in the state and has asked an industry task force to provide recommendations. “We are committed to working with WBI Energy and the entire energy industry so that we continue to reduce flaring, add value to our energy resources, and help meet the nation’s energy needs,” he said. “This pipeline is part of the solution, and I commend MDU Resources and WBI Energy for their commitment to North Dakota and to the responsible development of our energy resources.” Rapidly growing natural gas pro- duction in western North Dakota, along with increasing demand from industrial, commercial, and residential markets in eastern North Dakota, Minnesota, Wisconsin, Michigan, and other Midwest markets, has generated strong interest in the Dakota Pipeline from potential shippers across the region. “This project provides access to markets in the Mid-Continent and Great Lakes regions of the U.S. We have been encouraged by the interest the marketplace has shown in this project to date,” said Steven L. Bietz, president and CEO of WBI Energy. “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.” During the open season, interested shippers will make binding bids for firm trans- portation capacity on the new pipeline. The proposed route will provide access to interconnections with pipe- lines operated by Great Lakes Gas Transmission Limited Partnership; Viking Gas Transmission Company; and potentially TransCanada Pipelines Limited. The interconnections would be at a point in northwestern Minnesota. The Dakota Pipeline has been ini- tially designed to transport approxi- mately 400 million cubic feet per day (MMCF/D) of natural gas and, depend- ing on user commitments, could be expanded to more than 500 MMCF/D. At a transport volume of 400 MMCF/D, the pipeline carries enough natural gas per year to provide the needs of 1.3 million homes. The project investment for the proposed pipeline system is estimat- ed to be approximately $650 million. The majority of the new system will be made of 24-inch-diameter pipe, and includes two new compressor stations. Following receipt of the contractual capacity commitments from the open season, and granting of the necessary permits and regulatory approvals, con- struction on the new pipeline could begin in 2016 with completion projected for 2017. & ! $ # & # " ! $ # & # & " & ! " & " $ # & & " & ! & " & & "! " ! & " " ! ! ! !% $ # "! !