MDU Resources Group, Inc. announced that the Dakota Prairie refinery initiated diesel product sales to the market on May 15. The 20,000 barrels-per-day refinery is the first greenfield fuels refinery built in the U.S. since 1976 and is co-owned and operated with Calumet Specialty Products Partners (NASDAQ:CLMT).

"We are excited to be sourcing the oil input for the refinery from the local Bakken region and selling diesel fuel directly into the market," said David L. Goodin, president and CEO of MDU Resources. "The plant has been ramping up throughout the month with current processing levels at the design level of 20,000 barrels per day, and is producing diesel fuel that meets required specifications. We are assessing the potential to further enhance the productivity of the plant in the future through modifications to increase its throughput capacity. We plan to utilize the expertise gained on the project to help develop future projects, such as a potential second plant presently being evaluated near Minot, North Dakota."

Construction of the facility began March 26, 2013. June is expected to be the first full month of production with inputs maintained at 20,000 barrels per day. Outputs are expected to be approximately 7,000 barrels per day of diesel fuel, 6,500 barrels per day of naphtha, 6,000 barrels per day of atmospheric tower bottoms and 300 barrels per day of natural gas liquids.

The company also announced it has launched the marketing of Fidelity Exploration & Production Company. "Our strategic decision to market Fidelity will allow us to fund the substantial opportunities we are seeing at our utility, pipeline and construction business units," said Goodin. "After a thorough review, we concluded the timing was appropriate to move forward with the marketing and sale process."

The company has a record $3.9 billion five-year capital investment program planned that includes record levels for its utility and pipeline and energy services businesses, and acquisition capital for its construction businesses.

About MDU Resources

MDU Resources Group, Inc. (NYSE:MDU), a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, including regulated utilities and pipelines, construction materials and services, and exploration and production.

See the site of the Dakota Prairie refiner