Another refinery designed to produce diesel from Bakken crude oil is in prospect in the Williston basin.

A subsidiary of MDU Resources Group Inc., Bismarck, ND, and an affiliate of Calumet Specialty Products Partners LP, Indianapolis, have signed a nonbinding letter of intent to study feasibility of building and operating a 20,000 b/d refinery in southwestern North Dakota. Diesel produced by the facility would be sold in the region of the booming Bakken oil play.

Earlier in February, Dakota Oil Processing LLC, Williston, ND, was reported to be seeking financing for a similar project (OGJ Online, Feb. 8, 2012).

Signatories of the new study are WBI Holdings Inc., an MDU Resources wholly owned subsidiary, and Calumet Refining LLC, owned by owners of the general partners of Calumet Specialty Products.

MDU Resources said site selection, permitting, crude oil procurement, marketing, and engineering studies have begun.