Plans for Devils Lake refinery stall
DEVILS LAKE -- Lagging oil prices have stalled plans for a proposed diesel oil refinery here. About a year ago, Eagles Ledge Energy, based in Vancouver, B.C., had announced plans to build a $200 million, 20,000-barrel-per-day clean fuels oil refi...
DEVILS LAKE - Lagging oil prices have stalled plans for a proposed diesel oil refinery here.
About a year ago, Eagles Ledge Energy, based in Vancouver, B.C., had announced plans to build a $200 million, 20,000-barrel-per-day clean fuels oil refinery in Devils Lake.
The refinery, operating under the name of American Dakota Refinery, is proposed to convert crude oil from the Bakken Formation in western North Dakota into off-road diesel fuel for use in farm and construction equipment. The oil would be marketed in the Northern Plains states.
However, the project currently is on hold, as oil prices have plummeted from more than $100 per barrel in September 2013 to the low $40-$50 range in recent months, said Rachel Lindstrom, executive director of Forward Devils Lake, the region’s economic development organization.
“It’s dependent on oil prices,” she said. “We’ve been watching it for a while now, and we’ve stayed in contact with them.”
The news comes at about the same time that MDU Resources announced that it would delay plans for a proposed diesel fuel refinery in Minot.
MDU Resources also announced last week that its Dakota Prairie Refinery in Dickinson had lost $12.6 million in its first seven months of operation. The 20,000-barrel-per-day Dickinson refinery is similar to the proposed facility in Devils Lake.
The proposed Devils Lake refinery originally had a targeted opening date of 2017. When operational, it is expected to employ about 100 people, with as many as 400 spinoff jobs, Lindstrom said.
Despite the delay, Eagles Ledge is not abandoning plans to build a Devils Lake refinery, she said.
“If and when they develop a refinery, Devils Lake is their choice,” Lindstrom said. “They have to see some upward movement in oil prices. At this point, we’re staying in contact with them. Whenever they’re ready, we’ll be here.”