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    Tax windfall expected from Bakken gas pipeline: media

Summary

US regulators approved the $260mn pipeline project in early June.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Shale Gas , Political, Regulation, Infrastructure, , News By Country, United States

Tax windfall expected from Bakken gas pipeline: media

A newly-approved pipeline catering to natural gas in North Dakota could bring in as much as $1mn per day in tax revenue, a state regulator said in an interview broadcast June 21 on public radio.

North Dakota Pipeline Authority director Justin Kringstad said the recent approval of the North Bakken Extension pipeline project means the shale-rich state can utilise some of the Bakken's associated gas reserves and bring in significant tax revenue.

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"I tried to do some rough numbers on tax revenue," he told Prairie Public Radio. "It would mean about $1 million per day, at its name-plate capacity."

A pipeline subsidiary of MDU Resources said June 3 it had secured federal approval for a pipeline expansion project meant to deliver associated gas from the Bakken shale formation in North Dakota.

The subsidiary, WBI Energy, received a certificate of convenience and necessity from the Federal Energy Regulatory Commission (FERC) for its North Bakken Expansion project, which could deliver as much as 250mn ft3/d of natural gas from the Bakken shale.

Though primarily an oil producer, the US Energy Information Administration estimates Bakken gas production will average about 2.7bn ft3/d in June.

The expansion project includes 62 miles of 24-inch pipe and 20 miles of 12-inch line. The total cost is estimated at $260mn. MDU said it expects to have the line completed and in service by the end of the year.