No takers for east-west pipeline in North Dakota yet

North Dakota east-west pipeline
North Dakota east-west pipeline(KFYR-TV)
Published: Aug. 19, 2022 at 2:55 PM CDT
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BISMARCK, N.D. (KFYR) - There was little interest from the private sector to invest in a natural gas pipeline from the Bakken oil patch to the eastern part of the state.

No companies applied for a $150 million grant from the state of North Dakota to build the pipeline by the deadline, which was Monday. The money is available from the federal government through the American Rescue Plan Act, which was created to assist states after the pandemic.

The director of North Dakota Pipeline Authority said although there isn’t a buyer yet, that doesn’t mean it’s the end of the road for this project.

“It’s tough to say, for certain, how this is going to continue to play out. But I know that those conversations, those discussions, are still happening as we speak. The folks, both on the supply and demand side, are still having those conversations to see if something can work out and align all those various parties and needs,” said North Dakota Pipeline Authority Director Justin Kringstad.

The state produced more than 3 billion cubic feet of natural gas per day in June. In May and June, North Dakota’s oil and gas industry captured 94% of gas and flared the rest, which is above the state’s target of 91%. Still, the new pipeline could further reduce flaring.