Quantum Energy to build Bakken refinery at transload site
Quantum Energy has announced plans to build a 20,000 barrel per day diesel refinery near East Fairview, N.D. The refinery will use Bakken crude as its feedstock. The recently formed company has agreed to purchase roughly 80 acres near a transloading facility under development that is owned and operated by Northstar Transloading.
According to Stan Wilson, president of Quantum, the Northstar facility will be a state-of-the-art transloading operation that offers an ideal location for a refinery. The design of the refinery could mimic the Dakota Prairie Refinery currently under development near Dickinson, N.D. The East Fairview Refinery site will be located southwest of Williston, N.D., and just over the North Dakota-Montana border near the town of Sidney, Mont.
“The Dakota Prairie Refinery in Dickinson has served as the model for our proposed Fairview Refinery and helped demonstrate to our funding sources the feasibility for our project as well,” Wilson said.
The proposed facility will operate as a topping plant, converting roughly one-third of all Bakken crude it processes into diesel fuel. The facility will produce 7,000 barrels of diesel per day. Once complete, the facility could generate $60 million annually, and employ 100-plus full-time workers.
In December, Quantum announced it had redirected its oil and gas focus from the West Texas Barnett Shale to North Dakota. Quantum has also opened an office in Williston. When the company made the focus announcement, Wilson said at the time that Quantum was impressed with the Dickinson refinery model and believed it could be replicated throughout the Bakken play.