07-02-2013
MDU Resources Group and Calumet Specialty Products partners announce diesel refinery JV
MDU Resources Group and Calumet Specialty Products Partners, today announced that they have formed a joint venture to develop, build and operate a diesel refinery in southwestern North Dakota. The joint venture will be called Dakota Prairie Refining, LLC.
MDU Resources Group’s participation in the joint venture will be through its wholly owned subsidiary, WBI Energy, Inc.
The facility will process 20,000 barrels per day 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, president and chief executive officer of MDU Resources. “There is a strong existing market for the plant’s production. Southwestern North Dakota also will benefit from the plant’s good-paying, long-term jobs and from the two companies’ longstanding commitment to the communities in which they operate and serve.
“All of our major businesses within MDU Resources have the potential to participate in this project,” Goodin said. “This demonstrates the strength of our business model, in which businesses with diversified capabilities work together to provide value-added benefits.”
“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 Calumet’s general partner. “North Dakota is experiencing rapid growth, and we’re excited to join arms with a well-respected company like MDU to help provide solutions to the region. The state of North Dakota has been a pleasure to work with, and many opportunities lie ahead for everyone involved here.”
“The development of another oil refinery has been a longtime goal of our state and with this project we are achieving that goal,” Gov. Jack Dalrymple said. “The decision by MDU Resources and Calumet to move forward on a new diesel refinery is good news for North Dakota and the entire nation. This project will be built by the private sector. It will create more jobs, it will help to further diversify our economy and it will increase the region’s supply of diesel fuel. Our Department of Commerce will continue working with MDU and Calumet to move this project forward.”
Goodin and Straumins expressed appreciation for the support this project has received from the state of North Dakota.
“We appreciate the help of the state’s agencies and officials to identify issues and help solve problems that are involved in a complex project such as this,” Goodin said. “We also appreciate North Dakota challenging us with a rigorous permitting process that will help ensure this state-of-the-art facility operates responsibly and safely, and becomes an important contributor to the local and state economy.”
The facility’s engineering and plant design are in the final stages. 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 Corporation and MDU Construction Services Group, are among potential subcontractors. Other MDU Resources’ companies involved in the project include Fidelity Exploration and Production Company, which will supply some of the facility’s crude oil; WBI Energy, which will supply natural gas service to operate the facility; and Montana-Dakota Utilities, which will supply the facility’s electricity needs.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
Worley awarded Bayou Bend CCS carbon capture and storage facility contract
We’ve been selected to design and evaluate CO2 gathering, handling and sequestration facilities located along the Gulf Coast in Southeast Texas. Bayou Bend ...
13-05-2024
-
Black & Veatch delivers feasibility study for Andes Energy LNG Terminal
Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has completed a feasibility study for the planned Andes Energy Terminal, LNG regasification ...
09-05-2024
-
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company ...
08-05-2024
-
Integrated Global Services recognized for role in mega turnaround
Integrated Global Services has been recognized as a major contributor to the successful Ras Tanura Refinery 2024 Mega Turnaround and Inspection for Saudi Arabian Energy ...
08-05-2024
-
BASF invests in capacity expansion of Basoflux® range of paraffin inhibitors
BASF plans to expand the global production capacity of its Basoflux® range of paraffin inhibitors at its site in Tarragona, Spain. This investment will enable BASF’s ...
07-05-2024
-
Ebara Elliott Energy to provide compressor for SAF project in Thailand
Ebara Elliott Energy, formerly Elliott Group, announces it has been contracted to provide a motor-driven recycle compressor with a variable frequency drive (VFD) for ...
07-05-2024
-
ETH Zurich select hte to provide high throughput test system designed for CO2 electroreduction
hte – the high throughput experimentation company was awarded a contract by the technical university ETH Zurich to provide a high throughput test system designed for ...
07-05-2024
-
TotalEnergies and Sinopec strengthen cooperation
On the occasion of the state visit to France by the President of the People's Republic of China, TotalEnergies, represented by Patrick Pouyanné, Chairman and CEO, and ...
07-05-2024
-
IPP enters agreement to market ammonia, methanol and melamine plants in Ludwigshafen
BASF and International Process Plants (IPP), a global leader in the acquisition and sale of process plants and equipment, have entered an agreement to market ammonia, ...
06-05-2024