nd.gov - The Official Portal for North Dakota State Government
Dakota Prairie Refinery Begins Operations in Western ND
Post Date: May 05 2015

By The Bakken Magazine
The Dickinson, North Dakota-based Dakota Prairie refinery has begun operations, MDU Resources Group Inc. and Calumet Specialty Products Partners L.P., the joint-partner on the refinery, announced Monday. The Dakota Prairie refinery is the first greenfield fuels refinery build in the U.S. in nearly 40 years.

The refinery can process 20,000 barrels per day (bpd) of Bakken crude, resulting in a production slate which includes up to 7,000 bpd that can be sold from the plant to regional customers.

“With more than two-thirds of North Dakota’s diesel fuel currently imported into the state, the Dakota Prairie refinery is well positioned to meet strong regional demand with additional, locally produced supplies of diesel fuel,” said David Goodin, president and CEO of MDU Resources. “Over time, we expect that this refinery has the potential to be an important contributor to the economic growth of the local and state economy.”

The Dakota Prairie refinery will also produce up to 6,500 bpd of naphtha, which is used as a diluent to transport heavy oil by pipeline or as a feedstock in gasoline production; up to 6,000 bpd of atmospheric tower bottoms, which can be used as a feedstock for lubricating oils; and other refined products, the company said.

“We are thankful for the support of local and state officials and agencies, and for the economic development climate that they have created in North Dakota,” said Goodin. “Together with our committed partner, Calumet, we are proud to have built the first refinery in this country since 1979.”

Construction of the facility began on March 26, 2013, on a 318-acre site that is located roughly four miles west of Dickinson. The original start date for diesel production was slated for the end of 2014. The delay was partially due to late revisions made to electrical systems. At its peak construction, the site employed more than 800 workers, and since becoming operational, employs 80. MDU estimates the total cost of the plant to be approximately $425 million to $435 million.

MDU is currently considering a second diesel refinery near Minot, North Dakota. “In the future, we expect there will be opportunities to improve financial performance of the refinery through debottlenecking and other strategies. We also will benefit from experience gained with this project to help develop future projects, such as a second plant,” Goodin said in a statement.

Dakota Prairie Refinery Begins Operations in Western ND - The Baaken Magazine 
Business Development Experience