MDU Resources Group, Inc. and Calumet Specialty Products Partners, L.P.
Announce Diesel Refinery Joint Venture
BISMARCK, N.D. -- February 7, 2013
MDU Resources Group, Inc. (NYSE: MDU) and Calumet Specialty Products Partners,
L.P. (NASDAQ: CLMT) today announced that they have formed a joint venture to
develop, build and operate a diesel refinery in southwestern North Dakota. The
joint venture will be called Dakota Prairie Refining, LLC.
MDU Resources Group’s participation in the joint venture will be through its
wholly owned subsidiary, WBI Energy, Inc.
The facility will process 20,000 barrels per day of Bakken crude oil.
Construction could begin this spring, and is expected to take up to 20 months.
The plant will be located on a 318-acre site located west of Dickinson in
Stark County, N.D. It will employ approximately 100 people. Hiring and
training of operating personnel is expected to begin in 2013. The plant will
employ its own plant manager and management team, who will report to a
governing board composed of representatives of WBI Energy and Calumet.
“Through this joint venture we are continuing to expand both our midstream
energy business and our vertically integrated investment in the Bakken oil
play,” said David L. Goodin, president and chief executive officer of MDU
Resources. “There is a strong existing market for the plant’s production.
Southwestern North Dakota also will benefit from the plant’s good-paying,
long-term jobs and from the two companies’ longstanding commitment to the
communities in which they operate and serve.
“All of our major businesses within MDU Resources have the potential to
participate in this project,” Goodin said. “This demonstrates the strength of
our business model, in which businesses with diversified capabilities work
together to provide value-added benefits.”
“This joint venture allows us to continue our plan of diversifying into
geographies with favorable feedstock options and niche product markets,” said
Jennifer G. Straumins, president and chief operating officer of Calumet’s
general partner. “North Dakota is experiencing rapid growth, and we’re excited
to join arms with a well-respected company like MDU to help provide solutions
to the region. The state of North Dakota has been a pleasure to work with, and
many opportunities lie ahead for everyone involved here.”
“The development of another oil refinery has been a longtime goal of our state
and with this project we are achieving that goal,” Gov. Jack Dalrymple said.
“The decision by MDU Resources and Calumet to move forward on a new diesel
refinery is good news for North Dakota and the entire nation. This project
will be built by the private sector. It will create more jobs, it will help to
further diversify our economy and it will increase the region’s supply of
diesel fuel. Our Department of Commerce will continue working with MDU and
Calumet to move this project forward.”
Goodin and Straumins expressed appreciation for the support this project has
received from the state of North Dakota.
“We appreciate the help of the state’s agencies and officials to identify
issues and help solve problems that are involved in a complex project such as
this,” Goodin said. “We also appreciate North Dakota challenging us with a
rigorous permitting process that will help ensure this state-of-the-art
facility operates responsibly and safely, and becomes an important contributor
to the local and state economy.”
The facility’s engineering and plant design are in the final stages. Westcon
has been selected as the general contractor, and Ventech Engineering will be
the primary equipment and technology provider. MDU Resources’ construction
businesses, Knife River Corporation and MDU Construction Services Group, are
among potential subcontractors. Other MDU Resources’ companies involved in the
project include Fidelity Exploration and Production Company, which will supply
some of the facility’s crude oil; WBI Energy, which will supply natural gas
service to operate the facility; and Montana-Dakota Utilities, which will
supply the facility’s electricity needs.
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides
value-added natural resource products and related services that are essential
to energy and transportation infrastructure, including regulated utilities and
pipelines, exploration and production, and construction materials and services
companies. For more information about MDU Resources, see the company's website
at www.mdu.com or contact the Investor Relations Department at
Calumet Specialty Products Partners, L.P. is a master limited partnership and
is a leading independent producer of high-quality, specialty hydrocarbon
products in North America. Calumet Specialty Products Partners, L.P. processes
crude oil and other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products. Calumet also
produces fuel products including gasoline, diesel and jet fuel. Calumet
Specialty Products Partners, L.P. is based in Indianapolis, Indiana and has
eleven facilities located in northwest Louisiana, northwest Wisconsin, western
Pennsylvania, Texas and eastern Missouri.
Except for the historical information contained herein, the matters discussed
in this release are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially from
results anticipated in the forward-looking statements. These risks and
uncertainties include, among other things, the ability of the parties to
complete financing of the project, the ability of the parties to obtain
required regulatory permits, the cost and time to complete the project, and
the availability of crude petroleum product and markets for processed
products. These and any other statements about future expectations, beliefs,
goals, plans or prospects constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including statements
containing the words “believes,” “plans,” “anticipates,” “expects,”
“estimates” and similar expressions) should also be considered to be
MDU Resources Group
Phyllis A. Rittenbach, 701-530-1057
director - investor relations
Rick Matteson, 701-530-1700
director of communications and public affairs
Tim Rasmussen, 701-530-1069
operating company public relations manager
Calumet Specialty Products Partners
Jennifer Straumins, 317-328-5660
president and chief operating officer
Press spacebar to pause and continue. Press esc to stop.