BELFIELD, N.D., September 28, 2021 (Newswire.com) – Meridian Energy Group Inc., a leading innovator in the petroleum-refining industry, announced today that it has entered into a long-term offtake agreement with Musket Corporation, a leading commodity supply, trading and logistics company, for the transportation of fuels from Meridian’s 49,500 barrels per day Davis Refinery being built in Belfield, North Dakota. The Davis Refinery is an advanced technology and environmental, social and governance (ESG)-compliant facility. Musket is a part of the Love’s Family of Companies and manages billions of gallons of crude oil, NGL, natural gas and transportation fuels annually.
Under the agreement, Musket will purchase, market, distribute and resell all of Davis’ output of diesel (360 million gallons annually) and gasoline (280 million gallons annually). These products represent approximately 90% of Davis’ total output of refined product by volume and 94% of Davis’ revenue by sale of refined products. The agreement’s initial term is 10 years following initiation of the refinery’s operations. It includes possible term extensions and options for establishing similar offtake arrangements for Meridian’s future refineries.
“Meridian and Musket have been in discussions since before the COVID-19 pandemic to determine the best strategy for marketing and distributing transportation fuels produced by Meridian’s modern, efficient and environmentally and socially responsible Davis Refinery,” said William Prentice, Meridian Chairman and CEO. “The pandemic-related challenges have been significant. However, the closing or curtailment of operations of several older, inefficient and environmentally challenged refineries has greatly expanded and accelerated the opportunities for Meridian to improve the environmental and social impact of the industry through the distribution of cleaner transportation fuels from next-generation refineries. Musket’s innovative multi-market strategies optimize those opportunities while providing new and better alternatives for Musket’s rapidly growing customer base.”
About Meridian Energy Group Inc.
The mission of Meridian Energy Group Inc. is to provide long-term shareholder value through the development and operation of the most modern, efficient and environmentally and socially responsible crude oil refineries in the world. The Davis Refinery represents the first of several next-generation Meridian refineries, as Meridian will be expanding with development, permitting and financing its next series of projects in the Permian Basin and in the Cushing, Oklahoma, areas. Meridian has a number of other locations under consideration and has the potential to export its proprietary refinery technology and processes to currently operational refineries worldwide. Established in 2013, Meridian has offices in Belfield, North Dakota, and Houston. Connect with Meridian Energy Group: Twitter, Facebook and LinkedIn. For more information, visit: //meridianenergygroupinc.com
About Musket Corporation
Musket Corporation is part of the privately held Love’s Family of Companies specializing in commodity supply, trading and logistics across North America. Musket is headquartered in Houston, with additional offices in Oklahoma City and Phoenix. For more information, visit www.musketcorp.com.
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