North Dakota refinery outlook

With a proven model of success for financing, permitting and building a refinery in North Dakota, many groups are positioning to build new refineries. This map shows relevant infrastructure associated with proposed locations.
By The Bakken Magazine Staff | December 18, 2014

MDU Resources is currently evaluating the potential of building and operating its second diesel refinery.

David Goodin, president and CEO of MDU said, “There continues to be high demand for diesel in North Dakota.” During the company’s third-quarter conference call, Goodin noted that the state consumes 59,000 barrels of diesel per day (bopd) but only refines 22,000 bopd.

“Given this substantially under-supplied North Dakota market, we are excited to announce that we are seriously evaluating the building of a second refinery,” said Goodin.

The company has identified a site and is currently working on permitting. The refinery would be nearly identical to the current 20,000 bopd production facility located near Dickinson, North Dakota. If MDU decides to go forward with the project, construction could begin early in the year. Calumet Resources, MDU’s partner on the Dakota Prairie Refinery, may or may not be involved with the second refinery, Goodin said.

Along with the MDU potential refinery, Eagles Ledge Energy Ltd., based in Vancouver, B.C., is proposing a refinery to be built in Devils Lake, North Dakota.

Similar to the refinery in Dickinson, the proposed $200 million, 20,000 bopd refinery could be up and operating within three years. In order to develop this refinery, Eagles Ledge has secured a 354-acre parcel northwest of Devils Lake.

“This location features multiple benefits, most notably its proximity to road and rail access, North Dakota’s existing oil pipeline, and ancillary services necessary for the optimization of the refinery’s development capabilities,” said Eagles Ledge Energy.

Eagles Ledge is completing its civic- and state-level due diligence on regulatory and licensing matters. “Eagle Ledge understands strong community and government support is crucial to the success of any projects that arise as a result of mutually beneficial partnerships,” the company said in the summary it provided. 

If approved, the refinery could be operating as early as 2017.