Dakota Prairie Refinery Progressing, Construction Well Underway
BISMARCK, N.D.--(BUSINESS WIRE)-- 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 forward-looking statements.
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 atwww.mdu.comor contact the Investor Relations Department firstname.lastname@example.org.
MDU Resources Group, Inc.
Phyllis A. Rittenbach, 701-530-1057
Director - Investor Relations
Tim Rasmussen, 701-530-1069
Operating Company Public Relations Manager
KEYWORDS: United States North America North Dakota
The article Dakota Prairie Refinery Progressing, Construction Well Underway originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.