MDU Resources has signed a non-binding letter of intent with
Calumet to explore the feasibility of jointly building and
operating a 20,000 bpd diesel refinery in southwestern North
The facility would process Bakken crude and market the diesel
within the Bakken region, the companies said.
Site selection, permitting, crude oil feed procurement,
marketing and engineering studies are currently underway, the
This project will capitalize on the
capabilities and expertise of two strong companies to develop a
facility that will serve demand for diesel by agriculture and
industry in the rapidly developing Bakken play, said
Terry D. Hildestad, CEO of MDU Resources.
We believe this joint venture will add value to Bakken
crude, he continued.
It will provide value to southwestern North Dakota
communities by providing steady, good-paying, long-term jobs
and through the two companies longstanding commitment to
the communities in which they operate and serve.
We are excited that the owners of our general partner
are partnering with MDU Resources and WBI to explore refining opportunities in the
Bakken, said Jennifer G. Straumins, chief operating
officer of Calumets general partner.
We believe that our refining capabilities and their
operating experience in the Bakken would be a strong
combination, she added. Both companies provide
operational expertise and capability vital to the success of a
large industrial project similar to this planned
Hildestad said the project exemplifies the potential that
exists for all of the major subsidiary companies within MDU
Resources to participate in a value-added project in the Bakken region and
Bakken crude is expected to be sourced, in part, by
our oil and natural
gas production company, Fidelity, he said.
There may be opportunities for the facilitys natural
gas and electric generation needs to be provided by
Montana-Dakota Utilities. The companys construction companies are also
capable of providing materials and services required to build