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Rising North Dakota oil production and demand spurs two new refineries
Energy Information Administration ^ | MARCH 27, 2013 | Energy Information Administration

Posted on 03/27/2013 1:38:04 PM PDT by thackney

One of two new refineries being built in North Dakota broke ground this week. The 20,000-barrel-per-day (bbl/d) Dakota Prairie facility is scheduled to be built in 20 months. The impetus for the state's second and third refineries is the rapid increase in demand for diesel fuel and kerosene for trucking and industrial use within the state. Much of the increase in demand has been fueled by the boom in crude oil production from the new wells in the Bakken Formation in North Dakota's northwest corner. The demand for these middle distillates rose 80% in North Dakota from 2009 to 2012, providing the incentive to invest in local refineries.

North Dakota currently has one refinery, the Tesoro Mandan refinery located near Bismarck. This refinery has a capacity of 60,000 bbl/d, and its primary products include diesel fuel, jet fuel, heavy fuel oils, and liquefied petroleum gas. The two new refineries are smaller, both rated at 20,000 bbl/d capacity, and both will be fairly simple units that focus on creating the diesel and kerosene that are needed locally.

The Dakota Prairie refinery, which just broke ground, is a joint venture of MDU Resources Group and Calumet Specialty Products and will primarily make diesel fuel.

The Trenton Diesel Refinery is also planned, but no start-up date has been announced; it received an air quality permit from the North Dakota Department of Health in early 2012.

The Trenton Diesel Refinery, whose parent company is Dakota Oil Processing, is expected to cost $200 million to build and start-up. It will have an atmospheric distillation column, hydrotreater, naphtha stabilizer, and associated process equipment. According to Dakota Oil Processing's website, the primary product from the refinery will be light gas oil, a type of distillate. Other products will be naphtha, which may be used in the petrochemical industry or mixed into heavy crude oil to make it easier to transport; kerosene that the refinery plans to blend with the distillate pool to maximize distillate yield; atmospheric gas oil, a type of heavy distillate; and heavy fuel oil, which can be sold in the bunker fuel market.


TOPICS: News/Current Events; US: North Dakota
KEYWORDS: bakken; energy; oil; refinery

1 posted on 03/27/2013 1:38:04 PM PDT by thackney
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To: thackney

And the Dakota and Trenton naphthas will be reformed to produce motor gasoline?


2 posted on 03/27/2013 1:43:38 PM PDT by 353FMG ( I do not indicate whether I am serious or sarcastic -- I respect FReepers too much.)
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To: thackney

The Feds are probably waiting until they’re 90% built before shutting them down.

It’ll be closer to Obama about to end his reign.


3 posted on 03/27/2013 1:57:19 PM PDT by TurboZamboni (Looting the future to bribe the present)
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To: 353FMG

I would guess they will be used to dilute with bitumen from Canada to make it capable of pumping without heating. Dilbit, diluted bitumen is becoming a more common product for refinery input.


4 posted on 03/27/2013 1:59:58 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
20,000 BPD?

aka: a tea pot

5 posted on 03/27/2013 2:03:42 PM PDT by Michael.SF. (Obama lied, Stevens died.)
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To: Michael.SF.

Come on now, there are at least a dozen refineries smaller in the US.

http://www.eia.gov/petroleum/refinerycapacity/table3.pdf

;-)

Every bit helps, even every little bit... (even if our refining already exceeds our demand)


6 posted on 03/27/2013 2:12:14 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Well hells bells thackney, I had a guy claim a couple of weeks ago that he had inside knowledge that some new ones were gonna be built. Glad he was right on that. Kind of blown away that they managed to get all the permitting to do it.


7 posted on 03/27/2013 3:37:41 PM PDT by Free Vulcan (Vote Republican! You can vote Democrat when you're dead...)
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To: Free Vulcan
they managed to get all the permitting to do it.

All permitting is done? Where did you read that? I saw the air permit but that is far from all.

8 posted on 03/28/2013 5:09:35 AM PDT by thackney (life is fragile, handle with prayer)
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To: Free Vulcan

Dakota Prairie design is not complete, so they do not have their final permits. They had a promotional groundbreaking event this week but it was not real construction beginning.

Dakota Prairie Refinery Celebrates Start of Construction with Groundbreaking Ceremony
http://www.mdu.com/News/Pages/NewsArticle.aspx?article=332
3/26/2013

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.

- - - - - -

The Trenton refinery is by Dakota Oil Processing. On their web site the air permit they received last year appears to be the only permit they discuss.

http://www.dakotaoilprocessing.com

The latest update on their web site is from February 23,2012. It states they are still in the Financing Development portion of the project.

http://www.dakotaoilprocessing.com/usrfiles/TrentonDieselRefineryFactSheet.pdf


9 posted on 03/28/2013 5:20:52 AM PDT by thackney (life is fragile, handle with prayer)
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To: 353FMG

The folks doing the Trenton Refinery state the following:

Naphtha

Naphtha is a volatile, colorless byproduct of petroleum distillation. Naphtha is also known as white gas, and when processed in catalytic reforming, it becomes high-octane motor gasoline. Since the process of making gasoline (catalytic reforming) is capital intensive and not justified given the current demand in the region, the naphtha produced will be sold in the Canadian market as diluent for tar sands oil transportation.

http://www.dakotaoilprocessing.com/Products.aspx


10 posted on 03/28/2013 5:26:40 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

I don’t think they have everything either. That’s why I was surprised. Last one was built when, ‘68?


11 posted on 03/28/2013 8:54:06 PM PDT by Free Vulcan (Vote Republican! You can vote Democrat when you're dead...)
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To: thackney

In time there will be a surplus of the naphtha if it is their plan to recycle it with the tar sands.

The naphtha will have to come out at some time or another.


12 posted on 03/29/2013 4:47:14 PM PDT by 353FMG ( I do not indicate whether I am serious or sarcastic -- I respect FReepers too much.)
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To: 353FMG

It will be processed into the fuel stream at the same refinery as the bitumen. There is a little bit sent back to recirculate but most stops traveling with the Bitumen.


13 posted on 03/30/2013 9:33:05 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Americans being productive despite the Obama headwind.


14 posted on 03/30/2013 9:42:02 AM PDT by Yardstick
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