The pipeline subsidiary of MDU Resources Group Inc. has received federal approval to build a pipeline expansion to transport natural gas from the Bakken Shale in North Dakota.

FERC on Tuesday issued the certificate of public convenience and necessity for WBI Energy Inc.’s 250 MMcf/d North Bakken Expansion project. The project includes construction in western North Dakota of about 62 miles of 24-inch diameter pipeline and 20 miles of 12-inch diameter pipeline. A compressor station and additional associated infrastructure also are part of the project.

With a projected cost of about $260 million, the Bakken expansion is expected to employ up to 450 people during peak construction, according to WBI.

WBI is ready to begin construction as soon as the Federal Energy Regulatory...