Basin Electric board approves transfer of Dakota Gas pipeline assets

At its July board meeting, Basin Electric's Board of Directors approved the sale of Dakota Gasification Company's (Dakota Gas) natural gas pipeline assets and transportation capacity to Basin Electric.

Included in the transaction are a 3.28-mile pipeline from Dakota Gas to Antelope Valley Station and a 36.6-mile pipeline from Dakota Gas to the Northern Border Pipeline (NBPL).

According to Dan Gallagher, Basin Electric vice president of commercial operations, the acquisition is intended to improve operational efficiencies and strengthen the cooperative's natural gas strategy.

"Basin Electric acquired Dakota Gas' natural gas pipeline assets and capacity because it helps improve operational efficiencies, including our natural gas hedging strategies," Gallagher said. "It also aligns these critical natural gas pipeline assets with generation where our needs are growing, which then also supports long-term natural gas growth."

Gallagher emphasized that the transaction will not affect day-to-day operations at either Antelope Valley Station or Dakota Gas.

"Natural gas will continue to physically flow through the pipelines as they have historically," he said. "It does help improve commercial efficiency, but it does not affect the physical operations of the facilities."

Transfer of the pipeline assets and capacity will take place in September after approvals from the Federal Energy Regulatory Commission, the Public Service Commission, and NBPL are received.

The transfer gives Basin Electric greater control of key natural gas pipeline infrastructure, particularly during winter weather events, helping support fuel reliability and the cooperative's commitment to maintaining a dependable fuel supply for its members.