MDU Resources Subsidiary Receives FERC Certificate on ND Natural Gas Pipeline Project

Rhea-AI Summary

WBI Energy, a subsidiary of MDU Resources Group (NYSE: MDU), received a certificate from FERC for the North Bakken Expansion project, which will increase natural gas transport capacity by 250 million cubic feet per day.

The $260 million project involves 62 miles of 24-inch and 20 miles of 12-inch pipelines in North Dakota and is projected to create up to 450 jobs during peak construction. Completion is expected by the end of the year, pending a notice to proceed from FERC within 30 days.

Positive

• Receipt of FERC certificate enables the $260 million North Bakken Expansion project.
• Project expected to create up to 450 jobs during peak construction.
• Increased transport capacity of 250 million cubic feet of natural gas per day.

Negative

• None.

BISMARCK, N.D., June 3, 2021 /PRNewswire/ -- WBI Energy, Inc., the pipeline subsidiary of MDU Resources Group, Inc. (NYSE: MDU), on Tuesday received an order from the Federal Energy Regulatory Commission issuing a certificate of public convenience and necessity on the North Bakken Expansion project, a natural gas pipeline expansion with capacity to transport 250 million cubic feet of natural gas per day from the Bakken in North Dakota.

"We are excited to be able to move forward with this expansion project. We appreciate the FERC's action on our certificate request, and the bipartisan support at both the state and federal levels that we received on the project," said David L. Goodin, president and CEO of MDU Resources. "Pipelines remain the safest way to move natural gas around the country, and this project is vital to capturing natural gas that is produced — and currently flared — as an associated product of oil production in the Bakken. We will be moving natural gas to ultimately serve industrial and household consumers who use it to heat homes, power manufacturing and drive economic growth."

The North Bakken Expansion project includes construction in western North Dakota of approximately 62 miles of 24-inch natural gas pipeline and 20 miles of 12-inch natural gas pipeline, as well as a new compressor station and additional associated infrastructure. It is expected to cost about $260 million and, during peak construction, is expected to employ up to 450 people.

"The FERC certificate is a major milestone for the project," said Trevor J. Hastings, president and CEO of WBI Energy. "Our team is eager to begin construction as soon as we receive our notice to proceed from the FERC. With receipt of the notice within the next 30 days, as anticipated, and favorable weather during construction, we expect to complete the expansion project and have it 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 and the president and CEO of 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. 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 designed to transport 250 million cubic feet of natural gas per day from the Bakken in North Dakota.

What financial impact does the North Bakken Expansion project have?

The project has an expected cost of approximately $260 million and will create up to 450 jobs during peak construction.

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

The project is expected to be completed by the end of the year, following the anticipated notice to proceed from FERC.

What company operates the North Bakken Expansion project?

The North Bakken Expansion project is operated by WBI Energy, a subsidiary of MDU Resources Group.

How does the North Bakken Expansion project benefit the community?

The project aims to capture flared natural gas, ensuring safer transport for industrial and household consumers, supporting heating and manufacturing.