Kelly Armstrong speaks during the Aug. 21, 2025, Industrial Commission meeting. (Photo by Mary Steurer/North Dakota Monitor)
The North Dakota Industrial Commission on Thursday awarded WBI Energy an up to $500 million financial guarantee to build a pipeline that will bring natural gas to the state’s eastern communities.
WBI’s project, which it calls Bakken East, is expected to transport about 1 billion cubic feet of natural gas per day to eastern North Dakota.
Bringing natural gas from the Bakken to the eastern part of the state will help North Dakota’s overall economy, Gov. Kelly Armstrong said. Right now, the eastern part of the state only gets gas from the Viking Gas Transmission pipeline, which spans the U.S. and Canada, so WBI’s project will give eastern North Dakota a more secure power supply, he added.
“Communities need gas to grow,” said Armstrong, who chairs the Industrial Commission. “We are taking a product that we have in excess that is stranded in the Bakken, and we are going to be able to move it across the state to people who need it.”
The pipeline also will support continued oil and gas development in the Bakken, Armstrong said.
The state has had a program to encourage businesses to build natural gas pipelines connecting to eastern North Dakota for over 15 years, though the program initially lacked funding. The Legislature in 2023 made $30 million per year in financing available, which the 2025 Legislature then voted to increase to $50 million per year.
WBI Energy, a subsidiary of MDU Resources, proposes building the first phase of its pipeline from McKenzie County to Washburn, and the second phase from Washburn to Mapleton, just west of Fargo. The company also plans to build an extension from Jamestown to Ellendale. WBI’s timeline is to have phase one in service in November 2029, and phase two in service in November of 2030.
WBI has not disclosed the total project cost. Justin Kringstad, executive director of the North Dakota Pipeline Authority, has said he estimates a project of this scope would cost $1.2 billion to $1.6 billion.
The project would be built entirely in North Dakota but would be classified as an interstate pipeline since it would connect with other existing pipelines that leave the state. For this reason, it would be permitted by the Federal Energy Regulatory Commission, not the North Dakota Public Service Commission.
Intensity Infrastructure Partners also applied for the state support. Representatives of the companies presented their project proposals to the Industrial Commission in July.
The three member commission — which includes Armstrong, Agriculture Commissioner Doug Goehring and Attorney General Drew Wrigley — indicated that it chose WBI over Intensity because WBI said it would commit to completing both phases of its project. Intensity representatives said the first phase of the pipeline from Watford City to Underwood was firm, but the company was still securing commitments for a second phase to the Fargo area.
North Dakota is purchasing capacity on the pipeline as a financial backstop. The state plans to eventually transfer pipeline capacity to private businesses. According to Kringstad, there are already companies expressing interest.
However, if North Dakota is unable to transfer its pipeline capacity, the Pipeline Authority could work with a gas marketing firm to try to recoup the state’s investment, Kringstad said.
In a worst-case scenario, the state would have to shoulder the full $500 million, or $50 million a year for 10 years. To finance this, it would have to take out a loan from the Bank of North Dakota, which would ultimately be repaid with state dollars from the Strategic Investment and Improvements Fund.
Armstrong said he is “extremely confident” the state will be able to transfer its share of the pipeline capacity to a private business. But even if the state is unable to fully recoup its investment, Armstrong said the economic benefits the project will bring will make it worthwhile in the long run.
Without additional natural gas pipelines to the Bakken, companies could have to reduce oil production. As Bakken wells age, they produce a higher percentage of natural gas, which is contributing to a shortage of pipeline capacity. North Dakota produces more than 3 billion cubic feet of natural gas per day.
“If we can’t move our gas, we can’t increase oil production or maintain oil production,” Armstrong said.
Details of the arrangement will be negotiated between WBI and the Industrial Commission. The state would not have any ownership stake in the pipeline, but would have a contract for a certain amount of space on the pipeline for 10 years. Kringstad estimates North Dakota would have roughly 17% of the pipeline capacity for the eastern half of the project. An estimate for the western portion was not immediately available.
WBI Energy President Rob Johnson said he views the state support as a bridge, not a subsidy. The support from the state helps WBI proceed with the project while other potential customers make final investment decisions, he said.
Johnson said the goal is for the project to not use the state support.
In its application materials, WBI said many customers who have expressed interest in the pipeline are developing power generation projects to support data centers. There also is demand from other potential industrial customers and residential customers, Johnson said.
“It seems like every week, something else is being announced in the state of North Dakota that’s going to benefit from a project like this,” Wrigley said.
Industrial Commission members encouraged WBI and Intensity to try to partner on a project. Intensity had announced an agreement with Rainbow Energy, which owns Coal Creek Station in Underwood.
Johnson said he could not comment on whether WBI would work with Intensity, as the commissioners suggested.
“We’ll work in the best interest of our customers and the shareholders,” Johnson said.
It’s unclear if Intensity would continue to pursue a project on a smaller scale without the state support. Intensity did not respond to an inquiry sent to the company’s media spokesperson.
Armstrong said the two companies working together could reduce “landowner fatigue” from residents potentially getting approached by two different companies.
WBI has received permission to survey land from over 80% of landowners along the 350-mile route, Johnson said.
The company plans to engage with landowners through meetings. WBI also would hold public meetings as part of the FERC regulatory review process.
The company will begin working with landowners to negotiate easements after the route is finalized. WBI would only use eminent domain for the project as a last resort, Johnson said.
“There are times where sometimes it’s necessary, but the goal going in is to not have to use eminent domain,” Johnson said. “That’s always our stance.”
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