MDU Resources to enhance Montana storage, pipeline

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.

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