Calumet, MDU set to finish construction on new Bakken diesel refinery
2/27/2015 12:00:00 AM
Calumet Specialty Products, together with its 50/50 joint venture partner, MDU Resources, is nearing completion on the construction of a 20,000-bpd diesel refinery located in Dickinson, North Dakota.
Calumet made the announcement Friday as part of its quarterly earnings report.
The refinery, which is expected to be completely supplied with locally-sourced Bakken crude oil, is expected to commence operations during the second quarter of 2015.
The estimated total construction cost of the expansion project to the joint venture is approximately $425 million to $435 million, up from the prior estimate of approximately $400 million.
Meanwhile, the total estimated annual EBITDA contribution to the joint venture from this project is estimated to be $60 million to $70 million, subject to market conditions.
Both the project cost and EBITDA contribution are to be split equally between the joint venture partners.
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