WBI Energy's 374-Mile Bakken East Pipeline Locks 1.4 Bcf/d of Binding Interest, Eyes $3.2B FID

WBI Energy, the natural gas pipeline subsidiary of MDU Resources Group, has secured roughly 1.4 billion cubic feet per day of binding interest in its proposed 374-mile Bakken East Pipeline, MDU said in its first-quarter 2026 results released May 7, lifting the project closer to a final investment decision that would unlock incremental Williston Basin gas takeaway just as the federal phase-out of routine Bakken flaring took effect.

The Bismarck-based parent reported Q1 2026 net income of $80.8 million, or 39 cents per diluted share, on operating revenue of $606.0 million. The pipeline segment, which houses WBI Energy, contributed $15.3 million of net income in the quarter, down from $17.2 million a year earlier on lower storage withdrawals and higher operating costs that offset gains from new transportation contracts. Phase one of Bakken East is targeted for November 2029 completion, with phase two scheduled for November 2030.

374-Mile Route From Watford City to Mapleton

According to WBI Energy's project page, the pipeline would run from a point near Watford City in northwestern North Dakota to the company's existing compressor station near Mapleton in eastern North Dakota, traversing the heart of the Bakken Shale in two construction seasons. Phase one covers the segment from northwestern to central North Dakota and phase two extends the line to the eastern end of the state. The system is in pre-filing review at the Federal Energy Regulatory Commission under docket PF26-4.

MDU said capital expenditure for the project is now estimated at $2.7 billion to $3.2 billion, incremental to the company's existing $3.1 billion forecast. Approximately 40 percent of the 1.4 Bcf/d open season interest is already locked under signed precedent agreements, including a $50 million-per-year, 10-year firm capacity commitment from the State of North Dakota approved by the North Dakota Industrial Commission in late April. CEO Nicole Kivisto told analysts on the May 7 call the company will finalize remaining precedent agreements before reaching a board-level FID, with design work proceeding in parallel.

Bakken Gas Takeaway Pinch Tightens

The 1.4 Bcf/d of indicated demand represents a meaningful slug relative to current Bakken associated gas output. The US Energy Information Administration's most recent Drilling Productivity Report puts Bakken gross gas production at roughly 3.4 billion cubic feet per day, meaning Bakken East alone could move volumes equivalent to about 41 percent of basin gas if fully utilized. Existing intrastate and interstate pipeline corridors out of the Williston Basin have been capacity-constrained for several years, contributing to chronic flaring rates that the EPA's 2024 Clean Air Act rule on associated gas seeks to eliminate.

The federal flaring phase-out under those rules took effect on May 7, the same day MDU reported its results. The agency issued companion guidance on May 8 clarifying that producers may continue limited routine flaring at new oil wells under specific conditions, but the new federal floor still requires capture or beneficial use as the default path forward. Bakken takeaway remains the binding constraint: the regulatory clock is now running while pipeline buildouts like Bakken East advance toward construction.

Companion Pipeline Projects Advance

WBI Energy is also advancing its Line Section 32 expansion, which will support a planned electric generation facility in northwest North Dakota; the company filed its FERC application in March 2026 with completion targeted for late 2028. A separate 90-mile Minot Industrial Project from Tioga to Minot has cost-recovery protections extended through late 2026 as that project advances. Together with Bakken East, these projects mark the most significant North Dakota pipeline expansion campaign of the past decade for MDU.

Kivisto said data-center power demand and Bakken associated-gas growth are the two structural drivers underpinning the segment's investment case. North Dakota's state-level commitment to anchor 1.4 Bcf/d of new takeaway, combined with the EPA flaring phase-out, sharpens that case considerably as utilities and producers seek certainty over multi-decade infrastructure horizons.

Macro Backdrop

Brent crude was trading at $101.65 per barrel and WTI at $95.46 per barrel on the CME in afternoon trading on May 8, according to Trading Economics. Henry Hub natural gas was at $2.77 per million British thermal units on OilPrice.com's quote board. The Bakken Williston Basin has historically seen wider crude differentials than the Permian, and the pace of takeaway expansion will be a key determinant of whether North Dakota producers can capture more of the WTI benchmark price as 2026 progresses.