MDU Resources Group, Inc. and Calumet Specialty Products Partners, L.P. Announce Diesel Refinery Joint Venture
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 investor@mduresources.com.
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.
Forward-Looking Statements
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.