Second small diesel refinery planned for North Dakota

Quantum Energy Inc. (QEI), Tempe, Ariz., said it has secured land for the construction of a 20,000-b/d grassroots hydroskimming refinery in North Dakota’s Williston basin Bakken shale region.

QEI signed a purchase and sale agreement with Northstar Transloading LLC to purchase 80 acres of land adjacent to Northstar’s transloading terminal in East Fairview, ND, for the plant’s construction, the company reported.

The planned Fairview plant, which is to be called the Mondak plant, will process crude oil from the Bakken shale region and will operate as a topping plant to produce about 7,000 b/d of diesel for local use, QEI said.

“We anticipate further announcements soon on funding for the expected $250 million investment,” said QEI Pres. Stan Wilson.

According to project documents, the Mondak plant will include a crude distillation unit, naphtha stabilizer, mid-distillate hydrotreater, sour water stripper, amine unit, LO-CAT sulfur recovery unit, and hydrogen generator unit.

When constructed, the Mondak plant would become North Dakota’s second topping plant for Bakken crude oil after Dakota Prairie Refining LLC’s new 20,000-b/d plant (OGJ Online, Feb. 7, 2013).

A joint venture of Calumet Specialty Products Partners LP, Indianapolis, and MDU Resources Group Inc., Bismarck, ND, the $300-milllion, 20,000-b/d Dakota Prairie plant also will produce mostly diesel for regional use (OGJ Online, Dec. 11, 2013; Mar. 27, 2013).

“The Dakota Prairie refinery in Dickinson has served as the model for our proposed Fairview refinery and helped demonstrate to our funding sources the feasibility for our project as well,” said Wilson.

While Calumet recently said it expects the Dakota Prairie plant to be commissioned during this year’s fourth quarter (OGJ Online, Feb. 21, 2014), QEI has yet to issue a firm timeline for its Mondak plant.