Saturday, November 21, 2009

Diesel Processing Plans Move Ahead

Plans for a western North Dakota topping facility to produce diesel fuel are inching forward, according to an article in the Sidney (Mont.) Herald. The goal of the project, which is being headed by Dakota Oil Processing of Fargo, is to produce 20,000 barrels of diesel per day using oil pumped from the Bakken formation in North Dakota and Montana.

Construction could begin as early as next summer, depending on the progress of engineering studies currently underway, according to Dakota Oil officials. The proposed site for the facility is near Trenton, which is just east of Sidney on the North Dakota side of the border. The estimated cost of the project is between $180-200 million.

According to the Herald, the topping plant is one of several energy projects planned by the MonDak Energy Alliance, a consortium interested in diversifying and enhancing the oil and gas industry in the region. The goal of the alliance is to build an energy complex along the North Dakota-Montana border that could include an oil refinery, ethanol plant, bio-diesel plant, wind farm and a coal-to-liquids conversion facility.

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