BELFIELD, ND--(Marketwired - Feb 16, 2017) - Meridian Energy Group, Inc., the leading developer of innovative solutions for a cleaner, environmentally-compliant oil refinery, announced today that it has recently entered into Memoranda of Understanding with local and regional petroleum product distribution firms, under which these firms will purchase and distribute up to 268 million gallons per year of refined products from the Davis Refinery, Meridian's greenfield refinery proposed for Billings County, near Belfield, ND. This is an important milestone for Meridian, since it represents over 67 percent of the design capacity of Davis Light, the first phase of the Refinery, and a still-significant portion of the completed 55,000 barrels per day capacity of Davis Refinery. Upon completion, the Davis Refinery will produce over 800 million gallons of refined products per year. Negotiations of distribution agreements with other firms are proceeding.
In addition, Meridian announced that it has completed a letter of intent with Sequent Energy Management, L.P. ("Sequent") under which Sequent will provide the Davis Refinery with its natural gas requirements.
Julia Olguin, Meridian VP of Strategies and Markets, had this to say on the agreements, "Currently, half of North Dakota's diesel fuel is imported into the state at great expense. The Davis Refinery will provide high-quality local fuels to the region, and meet strong regional petroleum product demand. We are pleased with the relationships that have been created between Meridian and the regional petroleum product distribution companies. It is refreshing to partner with good, honest companies that share the same vision. The efficiencies and growth potential of the Davis Refinery will be an important contributor to the economic growth of North Dakota's local and state economy."
These announcements come as Meridian is finalizing negotiations on an array of agreements supporting the operation of the Davis Refinery, including product distribution and offtake, crude supply, and crude-product logistics agreements. Further announcements will be made in the coming weeks as these negotiations are completed. The Refinery anticipates ground breaking shortly after it receives the Permit to Construct from the North Dakota Department of Health - Air Quality Division. In the interim, the Company is proceeding with the purchase and fabrication of long-lead items of equipment and vessels, and expects to be in full commercial operation of Davis Light in early 2018.
The Mission of Meridian Energy Group, Inc. is to provide long-term shareholder value through the development and operation of the cleanest, most efficient and environmentally-compliant crude oil refineries in the world, benefiting the community and its investors. Established in 2013, Meridian is led by energy industry experts with a combined 500 years of world-class expertise in energy & hydrocarbon processing, project development, finance, and large capital project management. Meridian Energy Group, Inc. current headquarters is located in Belfield, ND.
For more information, visit: http://www.meridianenergygroupinc.com/
To view the latest in Best Available Control Technology being leveraged in the Davis Refinery, visit: The Davis Refinery - The New Standard in Clean Technology.