Joint venture advances plan for grassroots refinery in North Dakota

Quantum Energy Inc., Tempe, Ariz., and a joint-venture partner Native Son Holdings LLC (NSH), The Woodlands, Tex., have filed a minor-source air quality construction permit application with the North Dakota Health Department’s division of air quality (DAQ) for construction of the partnership’s proposed 40,000-b/d refinery in Berthold, ND (OGJ Online, July 21, 2015).

Submitted to DAQ on July 30, the permit application, if approved, would further the joint venture’s plan to build the grassroots refinery on part of a combined 340-acre site in the Berthold area of Ward County, ND, that Quantum Energy previously optioned during fourth-quarter 2014, Quantum Energy said.

To be owned by Quantum Energy and NSH subsidiary Native Son Refining LLC, Quantum Native Processing Partners LLC (QNPP), construction of the refinery would require a capital commitment of about $645 million, according to Quantum Energy.

Using June 2015 prices, QNPP projects annual revenues from the planned Berthold refinery about $1.2 billion, with a resulting annual EBITDA of about $345 million.

Based on a 360-day operating year, the refinery would have a production slate of 18,400 b/d of gasoline, 13,200 b/d of ultralow-sulfur diesel (ULSD) No. 2, 5,600 b/d of ULSD No. 1, and 2,800 b/d of atmospheric gas oil.

The venture expects the permit process to take 4-6 months, said Robert L. Monday, founder of NSH and its subsidiaries.

QNPP disclosed no additional details regarding timelines for the project’s construction or potential commissioning.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...