Meridian Chooses Engineering Firm, Process Technology for Grassroot Refinery in North Dakota

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Researched by Industrial Info Resources (Sugar Land, Texas)--Progress on what could be the first grassroot refinery to be built in the U.S. in nearly three decades appears to be moving along. This month, Meridian Energy Group (Irvine, California), which plans to construct the 55,000-barrel-per-day (BBL/d) Davis refinery in North Dakota's Bakken Shale, made strides toward the engineering and process technology of the plant.

Earlier this month, Meridian finalized a contract with Vepica USA Incorporated (Houston, Texas) to perform engineering work for the plant. Vepica will provide process optimization and design work in preparation for the start of refinery construction.

On August 23, Meridian announced that it had finalized a licensing agreement for the refinery process technology with Axens North America Incorporated (Houston). Meridian Chief Executive Officer William Prentice said, "Axens is an industry leader and able to provide the best of both worlds, enabling the Davis Refinery to become the cleanest and most efficient refinery on the planet and set a standard in liquid fuels technology."

Thus, this grassroot refinery appears to be one step closer to becoming reality, marking what could be a significant project in the U.S. refining industry. Industrial Info currently expects the project to kick off in late 2017, with overall completion slated for 2019. However, a few additional hurdles remain, such as its application to the air quality division of North Dakota's health department to proceed with construction. The project has an estimated total investment value of $900 million.

The company chose the refinery's location near Belfield, North Dakota, not only for its proximity to oil production from the Bakken Shale, but also for its proximity to oil and gas pipelines and a rail line, possibly facilitating the construction of a crude oil feedstock offloading and refined fuels uploading terminal, as the Burlington Northern Santa Fe rail line runs through the site.

Industrial Info is tracking other potential grassroot refineries in the U.S., including the 15,000-BBL/d Thunder Butte Refinery, which is also being planned for construction in North Dakota beginning in 2017. The facility will process mainly Bakken crude to produce diesel fuels and naphtha.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.