MDU Resources earlier this week indicated it could sell a newly built refinery in North Dakota it co-owns with Calumet Specialty Products. MDU said in a statement Tuesday its refining segment lost $7.2 million in the second quarter due to deteriorating conditions in the diesel and naphtha markets and a narrowing spread between WTI crude and Bakken crude. The refinery is designed to refine Bakken crude into diesel to supply regional markets.
MDU said it was “assessing various options with respect to its ownership interest in the refinery” amid the results. The firm noted that while the refinery is operating “satisfactorily,” it remains focused on operational improvements and cutting costs.
Dakota Prairie, which began operating in May 2015, was the first greenfield fuels refinery built in the U.S. in nearly 40 years. Plant manager Mary Trost spoke to BIC Magazine last October about the refinery’s capability to meet local diesel demand, its safety record and its workforce challenges.
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