Tesoro Corp. has acquired the 20,000-barrel-per-day Dakota Prairie Refinery near Dickinson, North Dakota, the company announced today. The refinery, which began operating last year, has struggled as the regional diesel and naphtha markets it was built to supply cratered. Previous owner MDU Resources reported last month the refinery lost $7.2 million in the second quarter and indicated it was considering a sale.
Tesoro CEO Greg Goff said in a statement his company expects to make more than $20 million in annual operating income from the refinery even if unfavorable market conditions persist. He said Tesoro would invest in system-wide commercial and feedstock optimization, increased distribution efficiency and reduced transportation and refining costs.
The Dakota Prairie Refinery is located 100 miles west of Tesoro’s Mandan refinery.
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