MDU Resources Subsidiary Begins Construction on ND Natural Gas Pipeline Project

Rhea-AI Summary

WBI Energy, a subsidiary of MDU Resources Group (NYSE: MDU), commenced construction on the North Bakken Expansion project in North Dakota, enabling the transport of 250 million cubic feet of natural gas per day. Following approval from the Federal Energy Regulatory Commission on July 8, this $260 million project will enhance WBI's capacity to over 2.4 billion cubic feet daily and is projected to reduce natural gas flaring. The expansion includes 63 miles of 24-inch pipeline and is expected to create up to 450 jobs during peak construction, with completion anticipated by year-end.

Positive

• The North Bakken Expansion project will increase WBI's natural gas capacity to over 2.4 billion cubic feet per day.
• The project is projected to reduce natural gas flaring significantly in the Bakken region.
• Commitments from producers for long-term transportation contracts indicate strong demand for the expanded capacity.
• The project will create up to 450 jobs during peak construction.

Negative

• None.

BISMARCK, N.D., July 19, 2021 /PRNewswire/ -- WBI Energy, Inc., a subsidiary of MDU Resources Group, Inc. (NYSE: MDU), began construction this week on the North Bakken Expansion project in northwestern North Dakota. This natural gas pipeline expansion will have capacity to transport 250 million cubic feet of natural gas per day from the Bakken Formation. WBI Energy received a notice to proceed on July 8 from the Federal Energy Regulatory Commission, allowing construction to commence.

"WBI Energy transports more than 50% of the natural gas produced from the Bakken. This project will bring WBI's total pipeline system capacity to more than 2.4 billion cubic feet per day while reducing natural gas flaring in the region by allowing producers to move more gas to market. Producers have reinforced their need for this additional capacity by committing to long-term transportation contracts with WBI," said David L. Goodin, president and CEO of MDU Resources. "We appreciate the support from state and federal officials who helped elevate the significance of this project for both its environmental and economic benefits."

The North Bakken Expansion project includes construction of approximately 63 miles of 24-inch natural gas pipeline and 30 miles of 12-inch natural gas pipeline, as well as a new compressor station and additional associated infrastructure. It is estimated to cost $260 million and, during peak construction, is expected to employ up to 450 people. WBI Energy expects to have the pipeline in service by the end of the year.

Forward-Looking Statements
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 in this release, including information about project completion, performance and cost, and statements by the president and CEO of MDU Resources, 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. For a discussion of important factors that could cause actual results to differ materially, refer to Item 1A — Risk Factors in MDU Resources' most recent Form 10-K and Form 10-Q and subsequent filings with the SEC.

About MDU Resources
MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 and S&P High-Yield Dividend Aristocrats indices, is Building a Strong America® by providing essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.

Media Contact: Laura Lueder, manager of communications and public relations, 701-530-1095
Financial Contact: Jason Vollmer, vice president and chief financial officer, 701-530-1755

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SOURCE MDU Resources Group, Inc.

FAQ

What is the North Bakken Expansion project by MDU?

The North Bakken Expansion project is a natural gas pipeline expansion initiated by MDU Resources' subsidiary, WBI Energy, to transport 250 million cubic feet of natural gas per day from the Bakken Formation.

When did construction for the North Bakken Expansion start?

Construction for the North Bakken Expansion project began after receiving approval on July 8, 2021.

What is the cost of the North Bakken Expansion project?

The North Bakken Expansion project is estimated to cost $260 million.

How many jobs will the North Bakken Expansion project create?

The project is expected to create up to 450 jobs during peak construction.

When is the North Bakken Expansion project expected to be completed?

The North Bakken Expansion project is expected to be in service by the end of the year.