WBI details new Bakken gas transport pipeline
A proposed 67-mile natural gas pipeline will improve Bakken gas takeaway options from the core of the play. WBI Energy Inc, a subsidiary of MDU Resources Inc., announced plans to construct the pipeline, compression and ancillary facilities to move gas to an interconnection point with Northern Border Pipeline. With the potential for full completion by 2021, the North Bakken Expansion Project would move 200 million cubic feet per day of natural gas.
In mid-January, the price of natural gas delivered to Northern Border at Watford City is roughly $2.30/MCF. In October of last year, North Dakota produced a record 2.5 MCF/day. The state is currently capturing roughly 80 percent of all gas produced.
Once complete, the project is expected to cost $220 million. WBI has already run an open season call for shipper interest and commitments and according to the company, it has earned commitments.
“We are excited to grow our pipeline system to meet the natural gas transportation needs in the Bakken region,” said Trevor Hastings, president and CEO. “We are working with our customers to meet these needs as the industry focuses on reducing natural gas flaring while growing production volumes.”
Starting near Tioga, North Dakota, the pipeline will end in McKenzie County.
According to data collected and maintained by the North Dakota Pipeline Authority, the state had a natural gas processing capacity of 2.4 MCF/d in 2018 but will reach 3.1 MCF/d this year. By 2020, the processing capacity could reach 3.3 MCF/d. Roughly 34 processing facilities are in operation today. “Further investment in gathering and processing will be required post-2020 in order for the industry to keep pace with expected production rates and gas capture goals,” NDPA said in its most recent industry update.