MDU Resources Group and Calumet Specialty Products have
formed a new joint venture to develop, build and operate a
diesel refinery in southwestern North
Dakota, the companies announced on Friday.
The joint venture will be called Dakota Prairie Refining.
This joint venture allows us to continue our plan of
diversifying into geographies with favorable feedstock options and niche product
markets, said Jennifer G. Straumins, president and chief
operating officer of Calumets general partner.
MDU Resources Groups participation in the joint venture
will be through its wholly-owned subsidiary, WBI Energy.
The facility will process 20,000 bpd of Bakken crude
oil. Construction could begin this
spring, and is expected to take up to 20 months.
The plant will be located on a 318-acre site located west of
Dickinson in Stark County, N.D. It will employ approximately
100 people. Hiring and training of operating personnel is
expected to begin in 2013.
The plant will employ its own plant manager and management
team, who will report to a governing board composed of
representatives of WBI Energy and Calumet.
Through this joint venture we are continuing to expand
both our midstream energy business and our vertically
integrated investment in the Bakken oil play, said David
L. Goodin, CEO of MDU Resources.
There is a strong existing market for the plants
production," he added.
The facilitys engineering and plant design are in the
final stages, according to the companies.
Westcon has been selected as the general contractor, and
Ventech Engineering will be the primary equipment and technology provider.
MDU Resources construction businesses, Knife River
Corp. and MDU Construction Services Group, are
among potential subcontractors.
Other MDU Resources companies involved in the project include Fidelity Exploration and Production Co.,
which will supply some of the facilitys crude oil; WBI
Energy, which will supply natural
gas service to operate the facility; and Montana-Dakota
Utilities, which will supply the facilitys electricity