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MDU Resources' Unit to Invest $50M for Pipeline Expansion
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Diversified energy company MDU Resources Group Inc.’s (MDU - Free Report) unit, WBI Energy, Inc. announced its plans to construct 38-mile pipeline to supply natural gas from Felton, Minnesota to eastern North Dakota and western Minnesota. This Valley Expansion Project is estimated to cost $50 million.
Details of the Project
The new pipeline will connect the Viking Gas Transmission Company pipeline near Felton, MN to WBI Energy's pipeline near Mapleton, ND. The company believes that this pipeline will offer another source of natural gas that will support industrial and commercial growth in the region.
The pipeline will have the capacity to transport 40 million cubic feet of natural gas daily, with the option to expand transport volumes depending on requirement. Assuming the successful completion of permitting and regulatory procedures, construction is expected to commence in early 2018.
An open season seeking capacity commitments on the proposed project has been initiated. WBI Energy has received significant customer interest in the project across the region.
Going forward, the utility expects its customer base of 1.50 million to continue growing 1.5–2% annually.
To meet rising customer demand, the company is working to expand pipeline services. MDU Resources’Pipeline & Midstream business has three expansion projects currently underway in North Dakota, of which the North Badlands project, with about 70,000 dekatherms (dth) per day of capacity under contract, and the Northwest North Dakota project are expected to be complete this year. The company is also working on a line expansion project involving additional compression. This will contribute an additional 22,000 dth per day in capacity, and is scheduled to come on-line in the summer of 2017.
Zacks Rank & Key Picks
MDU Resources currently sports a Zacks Rank #1 (Strong Buy).
Other favorably placed stocks in the same space are Clean Energy Fuels Corp. (CLNE - Free Report) , Just Energy Group Inc. and Centrica plc (CPYYY - Free Report) . While Clean Energy Fuels Corp. carries the same Zacks Rank as MDU Resources, both Just Energy and Centrica have a Zacks Rank #2 (Buy).
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MDU Resources' Unit to Invest $50M for Pipeline Expansion
Diversified energy company MDU Resources Group Inc.’s (MDU - Free Report) unit, WBI Energy, Inc. announced its plans to construct 38-mile pipeline to supply natural gas from Felton, Minnesota to eastern North Dakota and western Minnesota. This Valley Expansion Project is estimated to cost $50 million.
Details of the Project
The new pipeline will connect the Viking Gas Transmission Company pipeline near Felton, MN to WBI Energy's pipeline near Mapleton, ND. The company believes that this pipeline will offer another source of natural gas that will support industrial and commercial growth in the region.
The pipeline will have the capacity to transport 40 million cubic feet of natural gas daily, with the option to expand transport volumes depending on requirement. Assuming the successful completion of permitting and regulatory procedures, construction is expected to commence in early 2018.
An open season seeking capacity commitments on the proposed project has been initiated. WBI Energy has received significant customer interest in the project across the region.
MDU RESOURCES Price
MDU RESOURCES Price | MDU RESOURCES Quote
Other Projects
Going forward, the utility expects its customer base of 1.50 million to continue growing 1.5–2% annually.
To meet rising customer demand, the company is working to expand pipeline services. MDU Resources’Pipeline & Midstream business has three expansion projects currently underway in North Dakota, of which the North Badlands project, with about 70,000 dekatherms (dth) per day of capacity under contract, and the Northwest North Dakota project are expected to be complete this year. The company is also working on a line expansion project involving additional compression. This will contribute an additional 22,000 dth per day in capacity, and is scheduled to come on-line in the summer of 2017.
Zacks Rank & Key Picks
MDU Resources currently sports a Zacks Rank #1 (Strong Buy).
Other favorably placed stocks in the same space are Clean Energy Fuels Corp. (CLNE - Free Report) , Just Energy Group Inc. and Centrica plc (CPYYY - Free Report) . While Clean Energy Fuels Corp. carries the same Zacks Rank as MDU Resources, both Just Energy and Centrica have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>