The 50-mile line will run from the Northern Natural Gas interstate pipeline at Bancroft and allow the area to receive gas from multiple pipelines and ease the capacity bottleneck at Norfolk.
The line will supply natural gas to Houston-based Tejas Tubular Products among other customers. Tejas Tubular plans to build a plant next year near Nucor Steel.
Most of the underground line will be north of and parallel to Nebraska Highway 51 and U.S. Highway 275.
Black Hills Energy company says the pipeline cost hasn't been determined yet.