BISMARCK, ND--(Marketwired - September 07, 2016) - WBI Energy, Inc., the pipeline and midstream subsidiary of MDU Resources Group, Inc. (NYSE: MDU), announced today that it will move forward with construction of its Valley Expansion Pipeline Project in eastern North Dakota and western Minnesota.
WBI Energy has secured the capacity commitments needed for the 38-mile, 16-inch natural gas pipeline that will connect WBI Energy's existing system near Mapleton, North Dakota, with the Viking Gas Transmission Company pipeline near Felton, Minnesota. Survey work has begun on the route and construction is expected to start in early 2018.
"This project was initiated because of customer interest in bringing more natural gas to growing eastern North Dakota and western Minnesota, and that interest certainly was supported during our open season," said Martin Fritz, president and CEO of WBI Energy. "We have signed agreements now from customers and are excited to move forward with the pipeline that will enhance the security of our existing system and support growth in the Red River Valley."
Cost of the expansion is estimated at $55 million to $60 million. The project, which is designed to transport 40 million cubic feet of natural gas per day, is under the jurisdiction of the Federal Energy Regulatory Commission, like the existing WBI Energy pipeline system. The company will work with FERC on permitting and regulatory requirements, which will include public-information meetings. Subject to approval by FERC, the Valley Expansion Project is expected to be complete and placed in service in 2018.
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 the 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. Important factors that could cause actual results to differ materially from those in the forward-looking statements include 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 essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, see the company's website at www.mdu.com or contact the Investor Relations Department at firstname.lastname@example.org.