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Construction of the Dakota Prairie Refinery began today with a groundbreaking ceremony held by the developers, MDU Resources Group, Inc. (NYSE: MDU) and Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT).
Construction of the diesel refinery, on a 318-acre site located west of Dickinson in Stark County, N.D. is expected to take approximately 20 months. The refinery will process 20,000 barrels per day of Bakken crude oil. It will employ 400 to 500 employees during peak construction and about 100 employees when it is operating.
North Dakota Governor Jack Dalrymple drove a bulldozer to lead the groundbreaking ceremony. Others participating in the event included the state’s congressional delegation, Sen. John Hoeven, Sen. Heidi Heitkamp and Rep. Kevin Cramer, along with state, local and industry officials.
“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 Governor 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. Westcon has been selected as the general contractor and Ventech Engineering will be the primary equipment and technology provider. MDU Resources’ construction businesses, Knife River Corporation and MDU Construction Services Group, are among potential subcontractors. 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.