US-based MDU Resources has announced a joint venture (JV) with Calumet Specialty Products Partners, an American refiner and processor of specialty hydrocarbon products, to set up a diesel refinery in southwestern North Dakota.

The JV will be called Dakota Prairie Refining. It will develop, build, and operate the refinery, which will have 20,000 barrels per day of Bakken crude oil of processing capacity.

Construction of the plant, to be located at the west of Dickinson in Stark County, is expected to begin early in this year and take up to 20 months for the completion.

MDU Resources president and chief executive David L Goodin stated, "Through this joint venture we are continuing to expand both our midstream energy business and our vertically integrated investment in the Bakken oil play."

Calumet Specialty Products Partners general partner, president and COO Jennifer G Straumins said, "This joint venture allows us to continue our plan of diversifying into geographies with favorable feedstock options and niche product markets."

MDU Resources will participate in the JV through its wholly-owned subsidiary WBI Energy.