New Quantum Facility To Mimic Dakota Prairie Refinery

By The Bakken Magazine Staff | April 30, 2014

North Dakota’s demand for diesel fuel is currently more than 53,000 barrels per day. The state produces roughly 22,000 barrels per day of diesel. By 2025, demand for diesel will exceed 75,000 bpd. Thanks to the Bakken and Three Forks formations, the state will soon be producing more than 1 million barrels of oil per day. To take advantage of the extreme supply and the forecast demand for diesel, a handful of projects will begin refining Bakken crude into diesel. Quantum Energy has just agreed to join the list. The company has purchased 80 acres of land adjacent to the Northstar Transloading LLC facility near East Fairview, N.D., to build a 20,000 bpd diesel refinery.

“The Dakota Prairie Refinery in Dickinson has served as the model for our proposed Fairview Refinery and helped demonstrate to our funding sources the feasibility for our project as well,” said Stan Wilson, president of Quantum Energy. The proposed facility will operate as a topping plant, converting roughly one-third of the Bakken crude it processes into diesel fuel. Once complete, the facility will produce 7,000 barrels of diesel per day. Annually, the refinery will generate revenue of $600 million and employ 100 full-time workers.

The Northstar Transload facility broke ground in January and will offer a wide variety of services. The 180-acre terminal will provide unit and manifest switching and transloading services; indoor and outdoor storage; 160,000 bopd of outbound crude; 20,000 bopd of inbound crude; pipeline interconnects; 12-station truck unloading facility and once complete, 800,000 barrels of crude storage.

The Quantum Refinery model is very similar to the Dakota Prairie Refinery under construction near Dickinson, N.D. Diesel from both facilities will be sold wholesale to local distributors. The DPR facility will produce roughly 6,500 bpd of naptha, which will be shipped by rail to Alberta, Canada. The naptha will then be used as a diluent for bitumen or as a chemical feedstock. The facility will also produce roughly 6,000 bpd of atmospheric tower bottoms (ATB). The ATBs will be shipped by rail to a cracker feeder in Montana operated by Calumet Specialty Products Partners L.P. The 300 bpd natural gas liquids produced at the facility will be trucked to a nearby gas plant.