North Dakota diesel refinery to process Bakken crude

Engineering and plant design are in final stages for a diesel refinery in southwestern North Dakota that will process 20,000 b/d of Bakken crude oil.

Construction could begin this spring on a 318-acre site west of Dickinson in Stark County, ND, said coventurers MDU Resources Group Inc., Bismarck, ND, and Calumet Specialty Products Partners LP, Indianapolis. It would take as long as 20 months to build the facility.

The plant, to be known as Dakota Prairie Refining LLC, will employ about 100 people and has received support from the state and from North Dakota Gov. Jack Dalrymple, the two proponents said. MDU Resources Group said a strong market exists for the plant’s output.

MDU Resources Group said its participation in the joint venture will be through its wholly owned subsidiary, WBI Energy Inc. The plant will employ its own plant manager and management team that will report to a governing board composed of representatives of WBI Energy and Calumet.

Westcon is 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 & Production Co., which will produce some of the refinery’s crude oil, WBI Energy, which will supply natural gas, and Montana-Dakota Utilities, which will provide electricity.