Dakota Prairie Refinery Progressing, Construction Well Underway
BISMARCK, N.D. -- June 17, 2013
MDU Resources announced today that construction of the Dakota Prairie Refinery
project is on track with initial site grading substantially complete.
Dakota Prairie Refinery, when complete, will be the first greenfield refinery
built in the U.S. since 1976. It is a joint project with Calumet Specialty
Products Partners, L.P. to develop, build and operate a 20,000-barrel-per-day
diesel topping plant in southwestern North Dakota. The project will process
Bakken crude and the diesel produced will be marketed within the Bakken
region. Total project costs are estimated to be approximately $300 million.
Knife River Corporation, MDU Resources’ construction materials and contracting
subsidiary, has moved approximately 1 million cubic yards of material since
construction commenced March 26, despite rain-related weather challenges. In
addition, they began preparing the foundation for 16 storage tanks planned for
the facility and the construction of a bridge that provides operational access
within the site.
Dave Podratz has been named the refinery manager at the facility where he will
lead the organizational development, start-up and commissioning process of the
refinery. Podratz brings refinery management expertise and more than 30 years
of industry-related experience to the project.
“We are focused on constructing the facility on time and on budget and
continue to target an in-service date in late 2014,” said David L. Goodin,
president and chief executive officer of MDU Resources. “This project is a
strong organic growth opportunity for us and based on our assumptions we
expect it will generate EBITDA of $70 million to $90 million in year one, to
be shared equally with Calumet.”
In addition to Knife River, other MDU Resources’ companies involved in the
project include Fidelity Exploration & Production Company, which will supply
crude oil to the facility; WBI Energy Inc., which will supply natural gas
service to operate the facility; and Montana-Dakota Utilities, which will
supply the facility’s electricity needs. MDU Construction Services Group Inc.
also is a potential subcontractor for the facility.
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
About MDU Resources
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. For more information about MDU Resources, see the company's website
at www.mdu.com or contact the Investor Relations Department at
MDU Resources Group, Inc.
Phyllis A. Rittenbach, 701-530-1057
Director - Investor Relations
Tim Rasmussen, 701-530-1069
Operating Company Public Relations Manager
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