Williston Basin Interstate Pipeline Company, the wholly owned natural gas transmission pipeline subsidiary of MDU Resources Group, Inc. (NYSE:MDU), announced plans to expand its existing Grasslands Pipeline. Placed in service in December 2003, the Grasslands Pipeline runs from the Powder River Basin in northeastern Wyoming to western North Dakota, where it connects with the Northern Border Pipeline.
The proposed pipeline expansion would add up to 40 million cubic feet per day (MMcf/d) to existing volumes on the Grasslands Pipeline and will be accomplished by adding new compression facilities. The project cost is expected to be in the range of $15 million to $20 million and the targeted in-service date of this expansion project is August 2009.
“Increased natural gas production in the Powder River Basin and the need for additional pipeline capacity to get this energy to major market areas is driving growth on our pipeline,” said Terry D. Hildestad, president and chief executive officer of MDU Resources Group, Inc. “This latest expansion project is one of four currently underway at Williston Basin. These projects are in varying stages of development and hold the potential to provide significant increases in our throughput volumes over the next several years.”
The Grasslands Pipeline held an initial capacity of 80 MMcf/d in late 2003 and was expanded since that time bringing the total firm pipeline transportation capacity on that segment to its current total of 138 MMcf/d. The Grasslands Pipeline was originally designed with an ultimate capacity of 200 MMcf/d.
An open season for the Grasslands Pipeline Expansion will begin on July 7, 2008, and will run through July 25, 2008. Open season documents will be available on Williston Basin’s Web site at www.wbip.com.
The information in this release includes forward-looking statements, including statements by the president and chief executive officer of MDU Resources regarding plans to develop and potential benefits of expanding transportation volumes on the Grasslands Pipeline, 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 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: energy, construction materials and utility resources. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and contracting, construction services, and electric and natural gas utilities. 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 Grasslands Pipeline is available for download at: http://www.mdu.com/information_news/2008_GrasslandsExpansion.jpg
Contacts:
Investor Relations:
Phyllis
A. Rittenbach, 701-530-1057
Director of Investor Relations
or
Media:
Tim
Rasmussen, 701-530-1069
Operating Company Public Relations Manager
or
Industry:
Rob
Johnson, 701-530-1622
Director of Market Services & System Planning
or
Mark
Anderson, 701-530-1623
Market Services Manager
