Contract details outlined for North Dakota refinery

Dec. 7, 2018

McDermott International Inc. has confirmed details of its scope of work on previously awarded contract by Meridian Energy Group Inc. to finalize front-end engineering design for Meridian’s grassroots 49,500-b/sd high-conversion Davis refinery to be built in Billings County in the heart of southwestern North Dakota’s Bakken shale region.

McDermott plans to develop the FEED within the context of an anticipated modular execution and construction approach for the project, the service provider said.

Following conclusion of the FEED study, McDermott said both parties will endeavor to enter into an engineering, procurement, and construction agreement to build the refinery.

McDermott valued the FEED contract—which will be reflected in the service provider’s fourth-quarter backlog—at $1-50 million.

With site preparation and grading at the Davis site under way, Meridian said it currently is proceeding with final design, equipment fabrication, and procurement for the project.

Full construction activities and foundation work on the refinery is scheduled to resume in spring 2019 for a targeted commissioning date sometime in 2020.

The FEED and planned EPC agreements follow the North Dakota Department of Health’s division of air quality issuance in June to Meridian of the final permit-to-construct the project under the first application in history for a full-conversion refinery of this size and complexity to seek and receive permitting to construct under classification as a synthetic minor source of air contaminants (OGJ Online, June 13, 2018).

Once in operation, the refinery will produce ultralow-sulfur diesel and premium gasoline from prolific crude feedstocks from the Bakken shale basin using advanced technologies intended to maximize operational efficiencies while minimizing environmental impacts (OGJ Online, Dec. 6, 2017; Aug. 10, 2016).

Contact Robert Brelsford at [email protected].