March 2025, Vol. 252, No. 3
Projects
Projects March 2025
Minnesota-Wisconsin Pipeline Awaits Regulatory Decision
Northern Natural Gas Company’s Northern Lights 2025 Expansion Project is moving forward as federal regulators review its application.
The project, designed to expand natural gas transportation capacity in Minnesota and Wisconsin, recently reached a key milestone with the Federal Energy Regulatory Commission (FERC) issuing an environmental assessment (EA).
Pipeline Route and Information
For an overview of this project and other related infrastructure developments, visit Global Energy Infrastructure.
The project includes about 8.6 miles of pipeline extensions across four counties in Minnesota and Wisconsin, as well as minor modifications to the La Crescent compressor station. Once complete, it will provide up to 46,064 dekatherms per day of firm winter natural gas transportation capacity, supporting growing demand in the region.
The planned pipeline expansions include a 3-mile extension of the 36-inch Lake Mills to Albert Lea E-line, 2.43-mile extension of the 30-inch Elk River 3rd Branch Line, a 1.91-mile non-contiguous extension of the 30-inch Farmington to Hugo C-Line, all in Minnesota. Additionally, a 1.28-mile extension of the 8-inch Tomah Branch Line Loop in Wisconsin.
The Commission was expected to issue a decision on the project in December 2024, with an in-service date targeted for Nov. 1. However, the project remains under review.
“The additional capacity could certainly help the region, but I fear the regulatory process will push the in-service date to beyond 2025,” Pipeline & Gas Journal’s Editor-in-Chief Michael Reed said.
FERC staff concluded in the Environmental Assessment review that the project would not constitute major federal action significantly affecting the environment.
ONEOK, MPLX to Build LPG Export Terminal, Pipeline
ONEOK and MPLX are partnering to build a 400,000- bpd LPG export terminal in Texas City, Texas, along with a 24-inch pipeline connecting the terminal to ONEOK's Mont Belvieu storage facility.
The joint venture, Texas City Logistics LLC (TCX), is split evenly between ONEOK and MPLX, with MPLX handling construction and operations.
“Given our high expectations for future growth and demand for more energy infrastructure, including export capacity, these projects with MPLX complement our disciplined capital allocation strategy,” Pierce H. Norton II, ONEOK president and CEO.
The facility’s loading capacity will primarily handle low-ethane propane and normal butane (NC4), with each company reserving 200,000 bpd for its customers.
The project, expected to be completed by early 2028, represents a total investment of $1.4 billion, with each company contributing $700 million. The terminal will use Marathon's existing infrastructure to optimize costs and construction timing.
A separate joint venture, MBTC Pipeline LLC, will develop the new pipeline. ONEOK owns an 80% stake and MPLX 20%, with ONEOK leading construction and operations. The pipeline investment totals $350 million, with ONEOK contributing $280 million and MPLX $70 million.
Kinder Morgan Finalizes Deal on North Dakota Gathering System
Kinder Morgan Inc. completed its $640 million acquisition of a natural gas gathering and processing system in North Dakota from Outrigger Energy II.
The deal includes a 270 MMcf/d processing facility and a 104-mile, high-pressure pipeline with a capacity of 350 MMcf/d. This pipeline connects the Williston Basin’s natural gas supplies to high-demand markets. The system is supported by long-term contracts with major customers in the area.
“We are pleased to have completed this strategic acquisition and to start integrating these assets with our existing Hiland gas footprint,” said Tom Dender, president of KMI Natural Gas Midstream. “This acquisition expands our transportation and processing services, allowing us to meet the growing needs of our customers.”
The acquisition is expected to immediately benefit Kinder Morgan’s shareholders, with a projected 2025 Adjusted EBITDA multiple of about eight times on a full-year basis. The transaction is also expected to help Kinder Morgan reduce capital expenditures for its existing Bakken customers in the future.
Harvest Alaska to Redevelop Kenai LNG Terminal
Harvest Alaska has reached an agreement with Marathon Petroleum Corporation and Chugach Electric Association to acquire and redevelop the Kenai LNG Terminal, aiming to address Southcentral Alaska’s energy needs.
The project is expected to provide additional natural gas supplies by 2026, with full-scale operations targeted for 2028.
Under the plan, Harvest will own, develop, and operate the facility, allowing utilities like Chugach and other Railbelt customers to secure additional natural gas to meet market demand. The project repurposes MPC’s existing LNG export infrastructure to help offset potential gas shortages in the region.
The Kenai LNG facility includes dock infrastructure capable of handling vessels carrying up to 2.9 Bcf of natural gas and storage capacity for 2.3 Bcf. Existing approvals from the Federal Energy Regulatory Commission (FERC) position the facility to address immediate energy needs while long-term solutions are developed.
Harvest has a long history of operating critical oil and gas infrastructure across the state, and this project strengthens our commitment to ensuring Alaska has the energy it needs,” Harvest CEO Jason Rebrook said. “By repurposing Marathon’s existing LNG facility, we aim to provide certainty to the Southcentral gas market while meeting the needs of Railbelt utilities.”
Chugach Electric, which is in discussions with Harvest to use the facility, sees the project as a crucial step in maintaining reliable energy supplies.
Michigan Court Backs Permits for Enbridge’s Line 5
A Michigan appeals court has upheld state permits for Enbridge Energy’s proposed tunnel project beneath the Straits of Mackinac, rejecting legal challenges from environmental groups and Native American tribes, according to the Associated Press (AP).
The ruling allows Enbridge to move forward with its plan to encase a section of its Line 5 pipeline in a protective tunnel.
The Michigan Court of Appeals determined that the Public Service Commission acted appropriately in issuing permits for the $500 million project.
According to AP, opponents had argued that regulators failed to assess whether the pipeline itself remains necessary and overlooked the environmental impact of fossil fuels. However, the court found no grounds to overturn the commission’s decision, concluding that it was comprehensive and reasonable.
Enbridge has operated Line 5 since 1953, transporting crude oil and natural gas liquids between Wisconsin and Ontario. The pipeline runs along the bottom of the Straits of Mackinac, where safety concerns have intensified in recent years. In 2017, Enbridge disclosed that its engineers had known about coating gaps on the pipeline since 2014. The following year, a boat anchor strike further raised fears of a potential spill.
Despite maintaining that the line remains structurally sound, Enbridge agreed in 2018 to construct the tunnel under an arrangement with former Michigan Gov. Rick Snyder. The tunnel would enclose a four-mile segment of the pipeline to provide additional protection.
Although the appellate ruling supports the project, Enbridge still faces additional legal and regulatory barriers. Michigan Gov. Gretchen Whitmer opposes the continued operation of Line 5, and Attorney General Dana Nessel is pursuing a separate lawsuit to revoke the easement allowing the pipeline to operate beneath the Straits. That case, currently in a state court, could result in further legal complications for Enbridge.
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