ND PSC approves gas plant, pipeline projects worth $251 million

By Patrick C. Miller | March 26, 2018

The North Dakota Public Service Commission (PSC) this month approved siting permits for two projects that it says will reduce natural gas flaring and improve safety in the western oil and gas producing region of the state.

The permits are for the Arrow Field Services Bear Den Gas Processing Plant II and the Cenex Pipeline upgrade project. “These projects will mean less truck traffic, less flaring, improved safety, $251 million invested into North Dakota and enhanced energy independence for America,” said Randy Christmann, PSC chairman.

The Arrow Bear Den plant will have a processing capacity of 120 million cubic feet per day. It will produce natural gas liquids (NGL) such as propane, butane and natural gasoline, as well as pipeline-grade natural gas—a mixture of methane, ethane and carbon dioxide.

The estimated cost of the project is $136 million. The plant will be located 7.5 miles southeast of Watford City, North Dakota, on the same land parcel as the Arrow Bear Den Gas Processing Plant I, a 30-million-cubic-feet-per-day facility.

Cenex Pipeline will construct a 182-mile-long pipeline from Sydney, Montana, to Minot, North Dakota, to replace a portion of the existing 8-inch pipeline and to increase throughput. The North Dakota portion of this project includes about 150 miles of 10-inch diameter pipeline running through Williams, Mountrail and Ward counties.

The pipeline will transport approximately 38,000 barrels of refined fuels per day, but will have a maximum capacity of 60,000 barrels per day. The estimated cost of the project is $115 million. The Cenex Pipeline transports refined fuels from Laurel, Montana, to Fargo, North Dakota.

“These two projects represent additional energy infrastructure that is essential to the state’s oil and gas industry and will help improve environmental stewardship and quality of life,” said Commissioner Julie Fedorchak, who holds the siting portfolio.

“The Cenex pipeline project not only adds capacity for moving refined product, but more importantly, replaces aging infrastructure with safer, state-of-the-art technology,” said Commissioner Brian Kroshus. “The Arrow Bear Den expansion plays an important role from an environmental standpoint by reducing flaring.”