02 Statewide Economic Development Infrastructure Plan

EXISTING CONDITIONS Since South Dakota does not have significant natural gas production, gas is supplied from outside the State by three interstate transmission pipelines. As of 2023, the Black Hills subsystem of the Williston Basin Transmission pipeline has the capacity to

supply approximately 75 million cubic feet (MMCF) per day of natural gas to western South Dakota and the Rapid City area. The Northern Natural Gas market area pipeline capacity map shows the pipeline entering South Dakota at two points in the southeast corner. » The Paulina West allocation has a capacity of 116 MMCF per day, supplying large parts of eastern South Dakota. » The Homer South allocation provides a portion of its 362 MMCF per day capacity to Sioux Falls and far southeast South Dakota. The Northern Border Pipeline , the largest of the three transmission pipelines in South Dakota, runs through the northeast part of the State with a capacity of approximately 2,500 MMCF per day. It supplies customers in northeast and central South Dakota (TCE Connects, tceconnects.com ). However, most of the gas in the pipeline flows through South Dakota into Minnesota and beyond. According to the U.S. Energy Information Administration (EIA), about 90% of the natural gas entering South Dakota ultimately leaves the State. In most cases, distribution partners provide service from the transmission lines to the end users. The largest natural gas users contract directly with the transmission pipelines for supply. The largest users in the State are ethanol plants, agricultural processing facilities, and electric power generators.

2023 South Dakota Natural Gas Usage by Sector Source: EIA

54% Industrial 19% Power

14% Residential 13% Commercial

Figure 5.1 2023 South Dakota Natural Gas Usage

Infrastructure First Project

Natural Gas | 49

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