Country’s First New Refinery Since the 1970’s sold at a Loss

In North Dakota the first refinery built in the U.S. since the 1970’s opened in May 2015, and sold last week at a loss to Tesoro, which owns the only other refinery in North Dakota near Bismarck. Designed to handle oil from the Bakken play, the Dickinson refinery produced 8,000 barrels of diesel per day, and no gasoline or jet fuel. The diesel fuel was planned to supply the trucks and drilling rigs operating in North Dakota. Ground broke for the refinery in 2013, but construction delays pushed the cost to $430 million about 40% over initial estimates. MDU Resources Group and Calumet Specialty Product Partners were equal partners in the Dickinson refinery. Tesoro assumed the refinery’s $66 million in debt, but did not disclose the sale price. Tesoro owns five other refineries in the U.S.