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Released May 26, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy services provider MDU Resources Group Incorporated (NYSE:MDU) (Bismarck, North Dakota) is reaping the benefits of strong natural gas demand as it positions itself for a growing role in the sector. The company is at work on a trio of natural gas pipeline expansions that it expects to be in service later this year. Industrial Info is tracking more than $1.5 billion worth of active projects from MDU, more than $1 billion of which already have entered their engineering phase.
Click on the image at right for a graph detailing MDU's active projects, by U.S. state.
"With the funding from the Infrastructure Investment and Jobs Act, along with the Inflation Reduction Act and additional state funding, our construction businesses will see increased demand in 2023 and beyond for the work they already excel in doing," said Dave Goodin, the chief executive officer of MDU, in a recent quarterly earnings-related conference call.
WBI Energy Incorporated, a subsidiary of MDU, is overseeing two of the three expansions: the $55 million Grasslands South Expansion from Dunn County, North Dakota, to Sheridan County, Wyoming, which is expected to carry 94 million standard cubic feet per day of natural gas 15.3 miles; and the $44 million Line Section 15 Expansion from Rapid City to Bell Fourche, South Dakota, which is expected to carry 31 million standard cubic feet per day of natural gas 24 miles.
Montana-Dakota Utilities Company, another subsidiary--and the original version--of MDU, is a work on a 21-mile, $9 million pipeline from Milnor to Gwinner, North Dakota, which is expected to carry up to 75 million standard cubic feet per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the Grasslands South, Line Section 15 and Milnor-to-Gwinner projects.
"At our pipeline business, we had record first-quarter transportation volumes," Goodin said. "This business recorded higher transportation revenues, largely due to the first full quarter of benefits from our North Bakken expansion project, which was placed into service in February 2022. We and increased volume commitments, which began here recently in February 2023."
WBI also is heading up the construction of a 330-mile pipeline from Tioga, North Dakota, to northern Minnesota. The two-phase line will carry up to 600 million standard cubic feet per day of natural gas from the Bakken Shale to an interconnection with the existing Great Lakes Gas Transmission and Viking Gas Transmission pipelines near Minnesota's border with Manitoba. It is divided into a 195-mile, $490 million North Dakota segment and a 135-mile, $370 million Minnesota segment. Both are expected to be completed in the third quarter of 2024.
The two segments will be supported by a $60 million compressor station near Watford City, North Dakota, and a $60 million compressor station near Hallock, Minnesota, both of which are set to finish construction along with their sections of the pipeline. Subscribers can read detailed reports on the North Dakota and Minnesota phases of the line, and the North Dakota and Minnesota compressor stations.
Goodin also noted that MDU reported a record-high contracting services backlog for its Construction Services segment of $2.1 billion at the end of the first quarter, 26% higher than its first-quarter 2022 backlog. The Construction Materials segment saw a record $959 million backlog, 23% higher than the same period last year.
MDU announced in November that it was undertaking a strategic review of its construction services subsidiary, MDU Construction Services Group Incorporated, which it expects to complete in the second quarter.
Earlier this month, MDU's board of directors approved the separation of Knife River Corporation, the company's construction materials subsidiary, as a publicly traded company. The spinoff is expected to be complete June 1. Knife River is finishing up construction on its $18 million prestressed concrete plant in Newman Lake, Washington, which will become the new home for the company's prestressed concrete business in the area, following the $2 million closure of its plant in Spokane Valley, Washington. Subscribers can read detailed reports on the Newman Lake plant and the Spokane Valley closure.
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 active projects from MDU.
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) platform 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).
Click on the image at right for a graph detailing MDU's active projects, by U.S. state."With the funding from the Infrastructure Investment and Jobs Act, along with the Inflation Reduction Act and additional state funding, our construction businesses will see increased demand in 2023 and beyond for the work they already excel in doing," said Dave Goodin, the chief executive officer of MDU, in a recent quarterly earnings-related conference call.
WBI Energy Incorporated, a subsidiary of MDU, is overseeing two of the three expansions: the $55 million Grasslands South Expansion from Dunn County, North Dakota, to Sheridan County, Wyoming, which is expected to carry 94 million standard cubic feet per day of natural gas 15.3 miles; and the $44 million Line Section 15 Expansion from Rapid City to Bell Fourche, South Dakota, which is expected to carry 31 million standard cubic feet per day of natural gas 24 miles.
Montana-Dakota Utilities Company, another subsidiary--and the original version--of MDU, is a work on a 21-mile, $9 million pipeline from Milnor to Gwinner, North Dakota, which is expected to carry up to 75 million standard cubic feet per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the Grasslands South, Line Section 15 and Milnor-to-Gwinner projects.
"At our pipeline business, we had record first-quarter transportation volumes," Goodin said. "This business recorded higher transportation revenues, largely due to the first full quarter of benefits from our North Bakken expansion project, which was placed into service in February 2022. We and increased volume commitments, which began here recently in February 2023."
WBI also is heading up the construction of a 330-mile pipeline from Tioga, North Dakota, to northern Minnesota. The two-phase line will carry up to 600 million standard cubic feet per day of natural gas from the Bakken Shale to an interconnection with the existing Great Lakes Gas Transmission and Viking Gas Transmission pipelines near Minnesota's border with Manitoba. It is divided into a 195-mile, $490 million North Dakota segment and a 135-mile, $370 million Minnesota segment. Both are expected to be completed in the third quarter of 2024.
The two segments will be supported by a $60 million compressor station near Watford City, North Dakota, and a $60 million compressor station near Hallock, Minnesota, both of which are set to finish construction along with their sections of the pipeline. Subscribers can read detailed reports on the North Dakota and Minnesota phases of the line, and the North Dakota and Minnesota compressor stations.
Goodin also noted that MDU reported a record-high contracting services backlog for its Construction Services segment of $2.1 billion at the end of the first quarter, 26% higher than its first-quarter 2022 backlog. The Construction Materials segment saw a record $959 million backlog, 23% higher than the same period last year.
MDU announced in November that it was undertaking a strategic review of its construction services subsidiary, MDU Construction Services Group Incorporated, which it expects to complete in the second quarter.
Earlier this month, MDU's board of directors approved the separation of Knife River Corporation, the company's construction materials subsidiary, as a publicly traded company. The spinoff is expected to be complete June 1. Knife River is finishing up construction on its $18 million prestressed concrete plant in Newman Lake, Washington, which will become the new home for the company's prestressed concrete business in the area, following the $2 million closure of its plant in Spokane Valley, Washington. Subscribers can read detailed reports on the Newman Lake plant and the Spokane Valley closure.
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 active projects from MDU.
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) platform 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).
