Two New Refineries to Answer North Dakota Demand

March 27, 2013 06:10 AM


North Dakota will soon have two new refineries to service demand in the state for diesel fuel and kerosene for trucking and industrial use. Demand for these middle distillates has risen in North Dakota 80% since 2009.

The Dakota Prairie facility is scheduled to open in the southwest corner of the Bakken formation in roughly 20 months with a production capacity of 20,000 barrels per day. The joint venture of MDU Resources Group and Calumet Specialty products will focus primarily on diesel production and has already broken ground.

The Trenton Diesel Refinery has yet to break ground, but parent company, Dakota Oil Processing, has already received an air quality permit from the state of North Dakota and expects construction and startup to cost around $200 million. No startup date has been announced for this project which will specialize in the production of light gas oil -- a type of distillate -- along with naphtha and kerosene.

Both refineries will have a daily production capacity of 20,000 barrels and are expected to satisfy increased demand for distillates to fuel operations and transport in the North Dakota shale.

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