BISMARCK, ND–(Marketwired – June 13, 2016) – WBI Energy, Inc., the pipeline and midstream subsidiary of MDU Resources Group, Inc. (NYSE:MDU), today announced plans to build an approximately 38-mile pipeline with the primary purpose of delivering natural gas supply to eastern North Dakota and far western Minnesota. An open season seeking capacity commitments on WBI Energy’s Valley Expansion Project was initiated today, and will be open until July 15. WBI Energy has received significant interest in the project from its customers in the region, which has driven the project.
The proposed pipeline would connect the Viking Gas Transmission Company pipeline near Felton, Minnesota, to WBI Energy’s existing pipeline near Mapleton, North Dakota. Cost of the expansion project is estimated at $50 million.
“The Valley Expansion Project will provide another source of natural gas to help fuel industrial and commercial growth in the area, and will greatly enhance supply security for existing end users in eastern North Dakota and western Minnesota,” said David L. Goodin, president and CEO of MDU Resources.
North Dakota Gov. Jack Dalrymple for several years has been a proponent of bringing more natural gas supply to the Red River Valley. “A project like the Valley Expansion is, frankly, a long-time coming, and I congratulate WBI Energy for its commitment to making it happen. This project will encourage continued growth in eastern North Dakota,” Dalrymple said. “Whether it’s industrial and commercial facilities, new natural gas-fired electric-generation plants or even taps to local farmers for drying grain, I expect we will see numerous benefits from this expansion in this important area of our state.”
As initially designed, the pipeline will be able to transport 40 million cubic feet of natural gas per day. With minor enhancements, it will be able to transport significantly more product if required, based on capacity requested during the open season or as needed in the future as the region’s needs grow. WBI Energy has begun the process of identifying a route for the project and, once the necessary permitting and regulatory work is completed, construction could begin in early 2018 with completion expected late that same year. The pipeline, from permitting through construction and operation, will be under the jurisdiction of the Federal Energy Regulatory Commission, similar to the existing WBI Energy pipeline system.
“We’re excited to announce this project and to be a part of growth efforts and increased supply reliability in the region,” said Martin A. Fritz, president and CEO of WBI Energy. “From the Valley Expansion Project in the east to our multiple system expansions this year in northwestern North Dakota, our team is committed to meeting the needs of our customers through increased natural gas transportation capacity. The upcoming open season will help us secure capacity commitments for the Valley Expansion Project and will initiate the process for obtaining the necessary permits and regulatory approvals. We’re looking forward to proceeding with this important project.”
Parties interested in learning more about the project, including open-season participation, should refer to WBI Energy’s website; open season information can be found in the “Expansion Plans and Open Season” section at http://transmission.wbienergy.com. General project information can be found at www.wbienergy.com/wbienergy/transmission/valley-expansion-project. Parties also can contact a representative as referenced below.
Forward-Looking Statements
The information in this release includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this release, including statements by executive management of MDU Resources and WBI Energy, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include obtaining sufficient long-term natural gas supply commitments and receiving the necessary permits and regulatory approval in a timely manner; the capacity of the proposed pipeline; and, the schedule and costs to complete the project. For a discussion of other important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K and Form 10-Q.
About WBI Energy
WBI Energy, Inc. provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering, through regulated and nonregulated pipeline systems primarily in the Rocky Mountain and northern Great Plains regions of the United States. It also provides cathodic protection and other energy-related management services. WBI Energy, Inc. is an indirect subsidiary of MDU Resources Group, Inc. For more information about WBI Energy, Inc., visit the company’s website at www.wbienergy.com.
About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, including regulated utilities, pipeline and midstream operations, construction materials and services, and a diesel refinery. For more information about MDU Resources, see the company’s website at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
