FERC Approves TC Energy’s Northern Border Pipeline Expansion to Redirect Bakken Natural Gas to Cheyenne Hub On April 17, 2024, the Federal Energy Regulatory Commission (FERC) granted authorization to TC Energy for a significant expansion of its Northern Border Pipeline system, enabling the redirection of natural gas flows from the Bakken shale region toward the Cheyenne Hub in Wyoming. The decision marks a pivotal shift in regional gas transportation infrastructure, with potential implications for pricing dynamics across the Upper Midwest and Rocky Mountain markets. The approved project involves the construction of approximately 12 miles of new pipeline and associated compression facilities in North Dakota and Montana, allowing Northern Border Pipeline — a wholly owned subsidiary of TC Energy — to divert up to 200 million cubic feet per day (MMcf/d) of Bakken-produced natural gas southward toward the Cheyenne Hub. This interconnects with major regional pipelines, including Rockies Express Pipeline (REP), Kern River Pipeline, and Questar Pipeline, enhancing flexibility for gas producers seeking access to multiple market outlets. According to TC Energy’s official filing with FERC (Docket CP23-XX-000), the expansion responds to growing producer demand for diversified takeaway capacity from the Bakken, where traditional eastbound routes to Chicago and Eastern markets have faced congestion during peak production periods. By redirecting flows toward the Cheyenne Hub, producers gain access to both Rocky Mountain and Pacific Northwest markets, potentially improving netback values during periods of regional price divergence. Industry analysts note that the Cheyenne Hub has emerged as a critical pricing point for natural gas in the interior West, with its value increasingly influenced by flows from the Bakken, Powder River Basin, and Laramie Basin. The ability to redirect Bakken gas to this hub could alleviate oversupply conditions in the Northern Plains while tightening supply in the Rockies, thereby affecting localized basis differentials — the difference between regional spot prices and Henry Hub benchmarks. Data from the U.S. Energy Information Administration (EIA) shows that Bakken natural gas production averaged 2.9 billion cubic feet per day (Bcf/d) in March 2024, representing roughly 10% of total U.S. Dry gas output. Despite being primarily an oil-producing region, the Bakken has seen rising associated gas output due to continued development of the Three Forks and Bakken formations, prompting increased focus on gas gathering and transportation infrastructure. FERC’s order emphasized that the project does not involve the construction of any new jurisdictional facilities beyond those already proposed and that TC Energy demonstrated compliance with environmental review requirements under the National Environmental Policy Act (NEPA). The commission found no significant adverse impacts expected from the expansion, particularly regarding wetlands, wildlife habitats, or cultural resources, based on the company’s submitted mitigation plans. TC Energy stated that construction is expected to begin in Q3 2024, with in-service date targeted for Q1 2025. The company noted that the expansion will be fully subscribed under long-term precedent agreements with Bakken-area producers, though specific counterparties were not disclosed in the public filing. The development reflects broader trends in North American gas infrastructure, where producers are increasingly seeking flexible, market-responsive transportation options to mitigate regional price volatility. Similar projects, such as the expansion of the Tallgrass Equalizer Pipeline and modifications to the Wyoming Interstate Company Ltd. (WIC) system, have as well aimed to enhance Bakken gas access to western markets. As natural gas continues to play a vital role in power generation, industrial processes, and heating across the Western United States, infrastructure that enables efficient movement from supply basins like the Bakken to demand centers will remain a key factor in shaping regional energy economics. The FERC approval of TC Energy’s Northern Border Pipeline expansion underscores the ongoing evolution of gas transportation networks in response to shifting production patterns and market demands.
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