Page 4 ■ Thursday, December 15, 2011
BAKKEN NEWS
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By MARA VAN ELLS Bismarck Tribune
The Mandan Tesoro Refi nery will
increase diesel production in order to support the growing regional demand for diesel fuel, according to a statement issued by the corporation. Mandan’s refi nery will expand its Dis-
tillate Desulferization Unit by 5,000 bar- rels of diesel per day, bringing the total number of barrels per day to 22,000, ac- cording to the statement issued Dec. 7. The corporation, headquartered in
San Antonio, expects the project to cost $35 million and to be completed in the last three months of 2013. It has already secured the required permits for the project.
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The Mandan facility was built in 1954 and is the only refi nery in North Dakota. It is supplied with crude via pipelines from the Williston Basin in Montana and in North Dakota. Tesoro acquired the refi nery from BP in 2001. Ron Ness, president of the North
Dakota Petroleum Council, said the an- nouncement is “fantastic news” for con-
sumers and suppliers of diesel fuel. “It’s a win-win. More homemade die- sel fuel for all of us,” he said. Ness said there had been a shortage of the fuel in North Dakota and across the region this fall. “We’ve seen a jump in diesel con- sumption from all the activity in North Dakota,” he said. Mike Rud of the North Dakota Pe-
troleum Marketers Association said the past fall’s shortage of diesel was due to a booming economy, the oil patch, the state’s commerce, agriculture and the coal and power plant industries. “A great problem to have is an econ-
omy that’s this diverse and powerful ... (but) we need to fi nd some way to solve this issue,” he said. Rud said the state saw an increase of 20 million gallons of diesel use from Oc- tober 2010 to this October. He said the increase was due to an earlier harvest, a larger energy sector and a construction season that went on longer because of good weather. “Certainly, Tesoro has been one of the beacons, if you will, for us to keep sup-
BRIAN GEHRING/Tribune
The Tesoro Corporation, which owns the Mandan refi nery shown in this June 3, 2011 aerial photo, announced Dec. 7 it will increase its diesel fuel production capacity by 5,000 barrels per day. A statement from Tesoro said the $35 million expansion project is expected to completed by the end of 2013.
More gas for Mandan Tesoro Refi nery to expand diesel production
ply in place over the past few months,” he said, adding that Tesoro’s plan to in- crease production is “tremendous news for the state of North Dakota.” Sen. John Hoeven, R-N.D., said he
sees the corporation’s expansion as an- other indicator of the state’s economic growth. “North Dakota’s economy is growing,
and we need more diesel to fuel agri- culture and commerce, and ensure they to continue to thrive,” Hoeven said in a statement. “We’re glad that Tesoro has recognized both the need and the op- portunity available in our state, and has responded by increasing the amount of diesel fuel produced at the Mandan re- fi nery.” The corporation announced plans to
increase crude production by 10,000 per day in March. It remains on schedule to complete that expansion by June 2012, according to the statement. (Reach reporter Mara Van Ells at 250- 8251 or
mara.vanells@bismarcktribune. com.)
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