MDU Resources pipeline subsidiary announces enhancement plans for storage and pipeline
2/16/2010
Bismarck, ND
Williston Basin Interstate Pipeline Company, the wholly owned natural gas transmission pipeline subsidiary of MDU Resources, announced plans to increase firm deliverability from its existing Baker storage facility in southeastern Montana. In conjunction with the storage enhancement, Williston Basin also announced plans to expand its existing natural gas pipeline system from the Baker storage facility to western North Dakota, where it connects with the Northern Border Pipeline.
The proposed storage enhancement would add up to 125 million cubic feet per day (MMcf/d) to existing firm storage deliverability volumes from the Baker storage facility. The storage project will be accomplished by drilling new storage wells, adding compression and replacing and looping existing storage gathering pipelines. The associated pipeline expansion will require new compression as well as looping of existing pipelines between Baker and Northern Border Pipeline. The project cost is expected to be in the range of $100 - $130 million, and the targeted in-service date is April 2012.
The Baker storage facility has a current firm withdrawal capacity of 115 MMcf/d. The proposed enhancement project will more than double firm deliverability from the Baker field, bringing the total to 240 MMcf/d. The ultimate size of the storage and pipeline expansion projects will depend on shipper interest.
A binding open season for the Baker storage enhancement and associated pipeline expansion will begin on February 16, 2010, and will run through March 18, 2010. Open season documents will be available on Williston Basin’s Web site at www.wbip.com.
“Usage of our storage facilities reached record levels in 2009 and we are currently sold out of firm storage capacity so this is an excellent time to move forward with an enhancement of our Baker storage field,” said Steven L. Bietz, president and chief executive officer of Williston Basin Interstate Pipeline Company. “We feel confident that increasing the firm storage deliverability at our Baker facility, along with associated firm pipeline capacity to Northern Border, will be well received by both existing and potential new customers.”
Williston Basin’s Baker storage field is the largest natural gas storage field in North America. It is one of three storage fields owned and operated by Williston Basin. The total working gas capacity of the three fields is 193 Bcf.
The information in this release includes forward-looking statements, including statements by the president and chief executive officer of Williston Basin Interstate Pipeline Company regarding plans to develop and potential benefits of expanding storage and transportation volumes on Williston Basin’s system, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include fluctuations in natural gas prices; the timely receipt of necessary permits and approvals; market demand for, and/or available supplies of, energy-related products and services; and unanticipated project delays. For a discussion of other important factors that could cause actual results to differ, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K and Form 10-Q.
MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: utility resources, energy and construction materials. MDU Resources includes electric and natural gas utilities, construction services, natural gas and oil production, natural gas pipelines and energy services, and construction materials and contracting. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Media Advisory – Map artwork available: A print-ready map showing the location of the Baker storage facility is available for downloading at: http://www.wbip.com/Documents/2010_OpenSeasonMap.pdf
Contacts:
Investor Relations:
Phyllis A. Rittenbach
Director of Investor Relations
(701) 530-1057
Media:
Tim Rasmussen
Operating Company Public Relations Manager
(701) 530-1069
Industry:
Rob Johnson
Director of Market Services & System Planning
(701) 530-1622
Mark Anderson
Market Services Manager
(701) 530-1623