North Dakota Backs $500M Pipeline as Bakken Oil Fields Surge

The North Dakota Industrial Commission voted unanimously on April 28 to commit up to $500 million over 10 years to backstop WBI Energy's Bakken East natural gas pipeline project. The funding, structured as $50 million annual installments, will support construction of infrastructure to move up to 1 billion cubic feet per day of natural gas from McKenzie County in the heart of the Bakken oil field eastward to central and eastern North Dakota, with expected service by the end of 2030. WBI Energy, a subsidiary of Bismarck-headquartered MDU Resources, is leading the project. The state's investment comes with substantial financial upside. According to Justin Kringstad, executive director of the North Dakota Pipeline Authority, the pipeline is expected to generate an additional $170 million per year in oil and gas tax revenues for the state. The funding commitment fulfills a 2025 legislative authorization and positions North Dakota to capitalize on growing demand for natural gas from the Bakken formation, one of the nation's most productive oil and gas regions. Governor Kelly Armstrong, who chairs the three-member Industrial Commission, backed the project as part of the state's broader strategy to develop infrastructure supporting the oil and gas industry. The financing is structured as a purchase of a portion of the pipeline's transport capacity, giving the state a direct stake in the project's success. WBI Energy may not require the full $500 million commitment, though the state's backing provides critical financial certainty for the massive undertaking.