MDU Resources unveils $3B capital investment plan
MDU Resources Group unveiled a plan that calls for more than $3 billion in capital investments from 2021 through 2025.
In the pipeline business, the focus is on organic growth, including constructing the North Bakken Expansion project, which is expected to be in service in late 2021. It will increase capacity by 250 million cubic feet per day. This business is also exploring additional organic growth projects, including potential industrial related projects due to low natural gas prices.
In the construction materials and services businesses, the capital expenditures forecast is focused primarily on organic expansion opportunities and equipment and plant replacements and upgrades. It includes the construction of a new prestress concrete plant in Spokane, Wash., where the company recently acquired prestress assets, several new materials plants, and a training facility for employees. Also, development of the company’s Honey Creek Quarry in Burnet County, Texas, is underway. Further, construction businesses continue to explore acquisition opportunities.
“MDU Resources continues to experience significant growth across our balanced mix of businesses, and we believe the capital investment plan demonstrates our commitment to organic growth,” David Goodin, president and CEO of MDU Resources, said.
Also, the construction of an 88-megawatt natural gas-fired combustion turbine near Mandan, N.D., is included in the outlined capital expenditures forecast, as are expenditures related to the retirement of the company’s three coal-fired electric generation units.
MDU Resources anticipates its electric and natural gas utility will grow its rate base by approximately 5 percent annually over the next five years. The company’s utility operations are spread across eight states where customer growth is expected to continue at a rate of 1 to 2 percent annually.
