A natural gas startup is working to spur in-state infrastructure development
BISMARCK—Year-old industry startup Bakken Midstream Natural Gas is seeking to spur the development of natural gas-related businesses in North Dakota to absorb gas production from the Bakken Shale.
Currently, the majority of the state’s gas and natural gas liquids production is shipped out of state. The existing infrastructure naturally supports those uses. Bakken Midstream’s vision is to develop new infrastructure that puts the emphasis on in-state development of natural gas and gas liquids. Such expansion is expected to attract new industry to the state and provide a sustainable alternative to natural gas flaring.
The company is currently seeking capital commitments from both public and private sources. Among the early supporters is the state of North Dakota itself, which recently awarded the company $200,000 in economic development funds through the Department of Commerce.
“The state is pleased to invest in a company that is willing to develop the infrastructure projects needed to attract a value-added industry that will benefit all of North Dakota,” said Commerce Commissioner Michelle Kommer. “We look forward to continuing to work with Bakken Midstream to make our state a world-class producer of natural gas-related products.”
The kinds of projects that will help North Dakota attain that goal include gathering infrastructure, processing plants, storage facilities and transmission pipelines.
While CEO Mike Hopkins emphasized that Bakken Midstream is not a petrochemical company—and is not proposing a plastics plant—a plastics plant is an example of the kind of value-added industries that could choose to invest in North Dakota if the state had the right infrastructure in place. Other examples include natural gas-fired power generation, enhanced oil recovery projects and fertilizer plants.
Whether or not Bakken Midstream’s ambitious proposals end up achieving success in every area, there is a clear need for innovative solutions. In March, North Dakota produced a record 2.8 billion cubic feet per day of natural gas. Approximately 555 million cubic feet per day—or 20 percent—was flared due to inadequate pipelines, limited processing plant capacity and other infrastructure constraints.