Dakota Prairie Refining LLC officials hosted a grand opening in late June to celebrate the start up of the first US refinery in about 40 years. DPR started selling commercial diesel from production at its recently commissioned refinery west of Dickinson, ND, in Stark County during May.
Impetus behind the refinery, which processes Bakken crude oil, was accelerated by North Dakota's increasing demand for diesel fuel for trucks and industrial demand. Much of that increase stemmed from activities associated with Bakken formation oil and gas development.
"An opportunity like this only happens once in a lifetime-to be at a new startup refinery," Mary Trost, DPR plant manager, told reporters during the June 29 grand opening. "Everything was built at once, everything was sized correctly, it all fits together."
She compared that to working with refineries that have been upgraded as needed throughout the life of the plant.
"You don't have a lot of the problems [as] with an older refinery," getting equipment to fit in a plant built decades earlier, Trost said, adding "You have all this work to do," in a typical modernization.
Named DPR plant manager in January, she has 25 years of experience in refining and petrochemicals, most recently as operations manager at BP PLC's Cherry Point Refinery in Blaine, Wash.
Another difference between DPR and other refineries is that DPR processes crude oil produced regionally vs. crude oil delivered by tankers or interstate pipelines. Trost noted she welcomes working with oil produced regionally, a shift from her previous jobs at refineries in Washington and Texas.
"To be out here where all these wells are-you have a much closer interaction with the people doing the drilling and production," Trost said. "That's been fantastic."
DPR also is evaluating the potential for implementing modifications that could increase the plant's crude throughput capacity, said David L. Goodin, president and chief executive officer of MDU Resources.
In addition, MDU Resources continued evaluating its previously announced plan to develop a second 20,000-b/d refinery near Minot, ND, said Goodin.
The Energy Information Administration has estimated demand for middle distillates rose 80% in North Dakota during 2009-12.
Joint venture owns DPR
DPR, which has a capacity of 20,000 b/d, is owned and operated by WBI Energy, a 50-50 joint venture of MDU Resources Group Inc., Bismarck, ND, and Calumet Specialty Produces Partners LP, Indianapolis. The $430-million refinery was the first US greenfield refinery built since 1976.
Initially, DRP had been scheduled to begin production in late 2014, but refinery startup was delayed by severe winter weather and late revisions to electrical systems and controls (OGJ, Dec. 1, 2014, p. 34).
Construction began in March 2013. Bilfinger Westcon Inc., Bismarck, ND, was the general contractor and Ventech Engineers International LLC, Pasadena, Tex., was the primary equipment and technology provider (UOGR, May/June 2014, p. 1).
Previously, North Dakota had one refinery, the 60,000 b/d-capacity Tesoro Mandan refinery, near Bismarck. A Trenton diesel refinery also is planned, but no start-up date has been announced. Its parent is Dakota Oil Processing.
DPR, when fully operational, will have about 80 employees to processes 20,000 b/d of Bakken crude oil delivered mainly by pipeline. Executives said 7,000 b/d would be diesel, 6,500 b/d would be naphtha, and 6,000 b/d would be atmospheric tower bottoms (ATBs). Naphtha and ATBs are to be moved by rail for use or additional processing elsewhere.
Trucks will move about 300 b/d of natural gas liquids to a nearby gas processing plant partially owned by WBI Energy.
Quantum Energy Inc. of Temple, Ariz., said it will form a joint venture with Native Son Holdings LLC (NSH), The Woodlands, Tex., to build a proposed 40,000-b/d grassroots refinery in Berthold, ND (OGJ Online, July 21, 2015).
