MDU Resources and Indiana-based Calumet Specialty Products Partners formed a joint venture, Dakota Prairie Refining, to build and operate a diesel refinery capable of processing 20,000 barrels of Bakken crude oil per day in southwestern North Dakota.
The refinery plant, on a 318-acre site about four miles west of Dickinson, North Dakota, will produce diesel fuel and other hydrocarbons. Construction of the plant, expected to employ approximately 100 employees, is estimated to cost from $280 million to $300 million.
The refinery’s design and engineering work are in the final stages and construction may begin as soon as this spring. Hiring and training of operating personnel is expected to begin in 2013. “The development of another refinery has been a long-time goal of our state and with this project we are achieving that goal,” Gov. Jack Dalrymple said. “The decision by MDU Resources and Calumet to move forward on a new diesel refinery is good news for North Dakota and the entire nation.
“This project will be built by the private sector. It will create more jobs, it will help to further diversify our economy and it will increase the region’s supply of diesel fuel,” Dalrymple added. “Our Department of Commerce will continue working with MDU and Calumet to move this project forward.”
Gov. Dalrymple met with company officials from MDU Resources and Calumet in March to discuss their plans to build a diesel refinery in western North Dakota. During that meeting, Dalrymple’s office said he told company officials that the state will continue to assist MDU Resources and Calumet Specialty Products throughout the planning process.