The North Dakota Industrial Commission will provide up to a financial guarantee of $ 500 million for a planned pipeline that would transport millions of natural gas gas a day from the western part of the state to the central and eastern areas.
On August 21, the Commission, which acted as the North Dakota Pipeline Authority, authorized financial guarantee and directed discussions on contracts to start with WBI Energy, a MDR subsidiary Group Resources, related to the state -of -the -art transport capacity needed to advance the construction of the Bakken East gas, which is expected at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion at 1.6 billion. dollars.
State intends to regain its investment selling the capacity purchased from private companies. “As the WBI assures the commitments of private companies to use natural gas and are already aligned, the state will transfer its pipe space to these companies,” said ruler Kelly Armstrong (R), who chaired the industrial commission.
The provisional design for the pipeline is 375 miles of high -pressure steel of 30 and 24 a day, with a ability to move up to 760 million meters of natural gas a day from the Bakken oil field, according to the company.
A contractor has not yet been chosen for the project.
“At this moment, we are working with the engineering, surveys, environmental and land contractors and we still have to disseminate with land owners,” says Mark Snider, a Senior Public Relations representative of MDR Resources Group Inc.
Proposed route
The proposed route would parallel the existing northern border pipeline to Manning, and then move to the east through the Beulah-Hazen area before crossing the Missouri river near Washburn, passing south-east to the Jamestown area, and then extends to the east and ending in the Fargo area.
The WBI plans to build the pipeline in two phases. The first would go from McKenzie County to Washburn, and the second phase would spread from Washburn to Mapleton, west of Fargo. The company also plans to build an extension of Jamestown to Elendale. The intention of the WBI is to have the first phase in operation of November 2029 and the second phase in the service of November 2030.
Due to the state requirements that limit the decrease, the burning of gas at the head, companies must capture and use or transport a certain percentage of natural gas or to be subject to restrictions and penalties of production.
“This project will move abundant natural gas to end users throughout the state and will support the longevity of oil production in North Dakota, which will benefit our economy during nearby generations,” the Commission said in a statement.
Armstong said that the pipeline will help ensure that oil and gas revenue continue to pass in state coffers. Since 2015, the State has raised more than $ 22.7 billion in oil and gas tax income, which supports schools, roads, hospitals and other public projects.
The state can acquire a capacity of canalization of up to $ 100 million every two years by virtue of a state law that facilitates the production, transport, distribution or delivery of basic products related to the energy produced in North Dakota. The warranty is $ 50 million a year for ten years.
“Communities need gas to grow,” Armstrong said. “We are taking a product that we have excessive that it is stuck in the Bakken and we can transfer it through the state to the people who need it.”
Currently, the eastern part of the State only gets gas from Viking Gas Transmission Canal, which covers the United States and Canada, so the WBI project will give a safer northern Dakota to the east of North Dakota, Armstrong said.
