MDU Resources Plans $2.8 Billion Five-Year Capex Program

Researched by Industrial Info Resources (Sugar Land, Texas)--Energy services provider MDU Resources Group Incorporated (NYSE:MDU) (Bismarck, North Dakota) said last week it plans to make $2.8 billion worth of capital investments from 2024 through 2028, with a focus on regulated energy delivery. Industrial Info is tracking about $1.5 billion worth of active projects from MDU, nearly all of which is attributed to natural gas pipeline-related projects.

"Our capital investment plans over the next five years are heavily focused on our regulated energy delivery businesses, with a 15% increase in planned spending as compared to the previous five years," said David L. Goodin, chief executive officer of MDU Resources, in a November 21 press release. "As we expect to complete the spinoff of our construction services business late next year, our planned capital investments for that business are limited to 2024."

MDU announced earlier this month it plans to spin off MDU Construction Services Group to "become a pure-play regulated energy delivery business consisting of electric and natural gas utilities and a natural gas pipeline business."

Of the forecast spend of $2.8 billion from 2024 through 2028, $1.4 billion is allocated to natural gas distribution, $880 million for its regulated electric and natural gas utility business, and $405 million for pipelines.

MDU Resources' planned capital investments for the pipeline segment "will focus on system growth to expand natural gas transmission capacity." In terms of active projects, Industrial Info is tracking construction of the Wahpeton Expansion Project in Eastern North Dakota, which is expected to wrap up next year. The project entails constructing a new pipeline designed to transport up to 210 million cubic feet per day (MMSCFD) about 60 miles southward from Mapleton, North Dakota to a new delivery station near Wahpeton, North Dakota, which sits on the border with Minnesota. The project is managed by WBI Energy Incorporated, a subsidiary of MDU. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for a full list of projects related to the Wahpeton expansion.

Also underway and expected to wrap up in 2024 is construction of a grassroot natural gas pipeline from North Dakota's Bakken Shale to Emerson, Manitoba, which involves installing about 195 miles of 24-inch-diameter line running from near Tioga, North Dakota, to the Minnesota border. The $490 million North Dakota section will be able to transport up to 600 MMSCFD of natural gas, and the $370 million Minnesota section features 135 miles of 24-inch pipeline to transport up to another 600 MMSCFD from the North Dakota-Minnesota border northwest to interconnect with two existing pipelines near Kittson County, Minnesota. Subscribers can read detailed information on the North Dakota and Minnesota portions, and click here for a full list of related projects.

Planned transmission investments include a Midwest Independent System Operator-approved transmission line project from Jamestown, North Dakota, to Ellendale, North Dakota, which entails constructing 95 miles of new, 345-kilovolt line from Otter Tail Power's (Fergus Falls, Minnesota) Jamestown Substation to Montana-Dakota Utilities' Ellendale Substation. The two electricity providers are partnering to develop, construct and co-own the transmission line. The project is in its early planning phase, in which plenty of factors could delay, alter or eliminate projected investment. Subscribers to the GMI Power Project Database can click here for more information.

The company's third-quarter financial results show earnings of $3.2 million for the electric and natural gas utility business, compared to $3.5 million year-over-year; the pipeline business had record third-quarter earnings of $11.9 million, up from $9.8 million year-over-year, thanks in part to record quarterly natural gas transportation volumes and higher storage-related revenues.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for projects attributed to MDU Resources.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).