Meridian secures midstream logistics partner for Davis refinery

Meridian Energy Group Inc. has signed a letter of intent with an unidentified firm to support midstream logistics for Meridian’s recently approved grassroots 49,500-b/sd high-conversion Davis refinery to be built in Billings County in the heart of southwestern North Dakota’s Bakken shale region.

Feb 27th, 2019

Meridian Energy Group Inc. has signed a letter of intent with an unidentified firm to support midstream logistics for Meridian’s recently approved grassroots 49,500-b/sd high-conversion Davis refinery to be built in Billings County in the heart of southwestern North Dakota’s Bakken shale region (OGJ Online, Dec. 5, 2018).

Under the agreement, the yet-to-be identified midstream logistics firm will build, own, and operate the crude oil and refined product midstream and logistics installations for the Davis refinery, enabling Meridian to focus on operations of Davis inside the battery limits, Meridian said.

The partnering firm, who has asked to remain in the background pending development efforts on assets associated with the letter of intent, has more than 70 years of midstream experience focused on providing a full suite of turnkey solutions to producers across the US.

Meridian also confirmed it continues to advance site preparation and grading at the Davis refinery site and is proceeding with the project’s final design, equipment fabrication, and procurement, with full construction to resume later this spring.

Scheduled for startup sometime in 2020, the Davis refinery, once in operation, will produce ultralow-sulfur diesel and premium gasoline from prolific crude feedstocks from the Bakken shale basin using advanced technologies intended to maximize operational efficiencies while minimizing environmental impacts (OGJ Online, Dec. 7, 2018).

This latest agreement for the North Dakota refinery follows Meridian’s announcement earlier in February that it also plans to build a full-conversion, 60,000-b/sd refinery in Winkler County, Tex., in the heart of the Permian basin, that will be permitted under classification as a synthetic minor source of air contaminants like the Davis refinery (OGJ Online, Feb. 11, 2019).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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