Start-up delayed for North Dakota refinery

Dakota Prairie Refining LLC, a joint venture of MDU Resources Group Inc., Bismarck, ND, and its 50-50 partner Calumet Specialty Produces Partners LP, Indianapolis, has delayed commercial production of diesel fuel and other products at its 20,000-b/d diesel refinery in North Dakota until the second quarter.

Dakota Prairie Refining LLC, a joint venture of MDU Resources Group Inc., Bismarck, ND, and its 50-50 partner Calumet Specialty Produces Partners LP, Indianapolis, has delayed commercial production of diesel fuel and other products at its 20,000-b/d diesel refinery in North Dakota until the second quarter (OGJ Online, Feb. 7, 2013).

Dakota Prairie Refining previously had targeted production to begin by Dec. 31, 2014, but experienced delays from severe winter weather in November and late revisions to electrical systems and controls, MDU Resources said (OGJ, Dec. 1, 2014, p. 34).

The plant’s cost, initially pegged at $300 million, now has been revised to more than $400 million, according to MDU Resources (OGJ Online, Mar. 27, 2013).

“Although we are disappointed in the delay and cost increase at the refinery, we anticipate good returns from this facility,” said David Goodin, president and chief executive of MDU Resources, adding that the company also expects future opportunities to improve the refinery’s financial performance through debottlenecking and other strategies.

MDU Resources also currently is evaluating the development of a second plant near Minot, ND, according to Goodin.

The Dakota Prairie plant, to be the state’s second refinery, will sit on 318 acres west of Dickinson, Stark County, in southwestern North Dakota, and will process Bakken crude oil.

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