MDU Resources Group, Inc. and Calumet Specialty Products Partners, L.P. began construction of the Dakota Prairie Refinery, on a 318-acre site located west of Dickinson in Stark County, North Dakota The refinery, which is expected to cost between $280 million and $300 million, will process 20,000 barrels per day of Bakken crude oil. It is estimated the facility will employ 400 to 500 employees during peak construction and about 100 employees when it is operating.

“Bringing this project from concept to construction took the effort of a great many people,” said David L. Goodin, president and chief executive officer of MDU Resources. “We especially appreciate the support of Gov. Jack Dalrymple, other state officials and state agencies. Their permitting process was rigorous, but at the same time they helped us identify and solve problems that are involved in a complex project such as this.”

“This facility will help supply North Dakota’s growing diesel fuel market, and will be a good contributor to the state and local economy,” said Jennifer G. Straumins, president and chief operating officer of Calumet’s general partner. “We look forward to working in a state where officials have demonstrated strong support for economic development.”

The facility’s engineering and plant design are in the final stages. Construction is expected to take approximately 20 months to complete. 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.

“The development of another refinery has been a long-time goal of our state and I applaud MDU Resources and Calumet for this major, private-sector investment in North Dakota,” Gov. Dalrymple said. “This project is good for North Dakota and the nation. It will create more jobs, it will help to further diversify our economy and it will increase the region’s supply of diesel fuel.”