Meridian Energy submits application for 55,000 b/d Davis Refinery in Bakken

Meridian has engaged engineering firm Vepica and Houston-based construction/logistics firm BASIC Equipment to manage project

William Prentice, Chairman & CEO of Meridian Energy Group, Inc

BELFIELD, ND– Meridian Energy Group, Inc. says it has submitted its first round of permit applications relating to its 55,000 b/d Davis Refinery, to be located near Belfield, in Billings County, North Dakota, the heart of the Bakken shale play.

Meridian Energy filed applications for a Zoning Certificate and Conditional Use Permit with Billings County.

“The Davis Refinery will be one of the most modern, efficient and environmentally-compliant refineries in the US in more than 50 years,” said CEO William Prentice.

In the coming weeks, Meridian will file additional permit applications, including an application for the Refinery’s Permit to Construct with the State of North Dakota Health Department.

The proposed Davis Refinery will be the first “greenfield” complex high-conversion refinery built in many years.

Prentice says that as a brand new plant, the Davis Refinery will not be burdened with outdated legacy operating units, will operate more cleanly and efficiently, will utilize state-of-the-art instrumentation and control technology, and will fully comply with modern environmental and safety requirements.

The Davis Refinery addresses two pressing needs:

• The demand for local refining capacity: The Davis Refinery will expand refining capacity near the production areas of the more than one million bpd of crude oil currently being produced in the Bakken region — most of which is currently is being transported out of North Dakota for refining at higher costs.
• The supply of fuel for the regional and local markets: The refinery will turn locally-produced crude into super-clean transportation and heating fuels, providing a supply to the oil service, agriculture and trucking industries, as well as consumer automobiles — which is currently being shipped into North Dakota also at higher costs.

Drilling in the Bakken

According to data from the North Dakota Pipeline Authority, the state produced 1.12 million b/d of crude in January, down from 1.15 million b/d in Dec. 2015 and 1.19 million b/d in Jan. 2015.

Production may have fallen, but less crude from the Bakken is being railed to refiners on the Atlantic and Gulf coasts as waterborne imports became more profitable recently.

For design, equipment and construction of the Davis Refinery, Meridian has partnered with multinational engineering firm, Vepica, and Houston-based construction and logistics firm, BASIC Equipment.