The Davis Refinery – the first full-conversion, modern “greenfield” refinery constructed in the U.S. since 1976!
Located in Belfield, ND, this modern plant will enjoy 100% new equipment configured in the most efficient manner, with longer operating cycles and higher output as compared with legacy refineries built decades ago.
Meridian is building a state-of-the-art crude oil refinery sited on approximately 150 acres (and additional acreage for buffer) in Billings County east of the Fryburg Rail Facility in Belfield, North Dakota – the heart of the Bakken. At a rated capacity of up to 49,500 barrels per day (“bpd”), Davis could produce as much as 800mm gallons per year of refined products from local crude to serve regional markets. With groundbreaking taking place in July 2018, plant completion is expected by 2023. The property is in close proximity to oil and gas pipelines and major transportation highways. The Burlington Northern Santa Fe rail line runs directly through the refinery site, facilitating the construction of a refined fuels uploading terminal.
The local government agencies and permitting authorities have embraced the projects as permanent job creators and a net contributor to the quality of life in the region. The Permit to Construct was issued in June of 2018 by the North Dakota Department of Health – Air Quality Division and Site Construction began in July 2018. The Davis Refinery will enjoy several competitive advantages, including: the proximity to oil production; the use of low cost natural gas to operate the plant; its strategic location with direct access to major transportation infrastructure; the business friendly climate of North Dakota fostered by state and local officials.
As a byproduct of the tremendous growth of the Bakken oil play has been the co-production of a significant amount of natural gas. About 1/3 of this gas is currently being flared, vented or is “no bid” and is available to Meridian at a cost well below hub prices paid by competing refineries. Also, the use of gas to operate the plant will allow 100% of the crude intake to be processed without a parasitic effect. The plant will have emissions so low it won’t require an EPA permit.
There is not likely a more business friendly state in the union compared to North Dakota, whose officials have urged Meridian to proceed with its Davis Refinery plans. Our presence is an integral part of the state’s plan to solve three major issues it faces: the creation of permanent jobs, the shortage of diesel fuel and the environmental crisis of the flaring of natural gas. Meridian expects to receive expedited permitting for the plant.