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Storage tank project approved

Directors pass resolution approving a $38 million ammonia storage tank project.

Dakota Gasification Company - September 21, 2011
The Bulletin

Dakota Gasification Company board of directors met last week for its monthly meeting in Bismarck. Directors passed a resolution approving a $38 million ammonia storage tank project.

The new tank will allow an additional anhydrous ammonia storage capacity of 30,000 tons at the Synfuels Plant.

Current storage capacity at the Synfuels Plant includes a 30,000-ton tank as well as 200 railcars that can hold up to 16,000 tons of anhydrous ammonia.

Karen Olson, process engineer, presented the scope of the project to the directors. The new project will increase storage by 30,000 tons, add a compressor system, a flare, the ability to off-load railcars and an increase in the earthen dike that will surround the tanks.

“The economics of the project show that it should be feasible to pay back within three to five years,” Claudia Miller, engineering manager said. The net annual average benefit is estimated at $7.6 million per year.

“In the past, product storage has limited sales,” Miller said. “The new tank will allow us additional sales as well as increased reliability since the ammonia plant will run longer.”

Plans are for the new tank to be built and ready for storage by fall 2012.

In other business, staff reported that the Synfuels Plant operated at 87 percent of potential production in August. On average, 132.8 million cubic feet of natural gas per day was delivered to the pipeline.

The anhydrous ammonia plant produced 6,333 tons, shipping 25,912 tons to market. Plant site inventory is 4,096 tons.

Production ammonium sulfate was 9,713 tons with 14,391 tons shipped to customers. Plant site inventory is 11,709 tons.

Shipments of carbon dioxide averaged 131.4 million cubic feet per day in August. More than four billion cubic feet were delivered to customers in Canada during the month.

Dakota Gas reported an after-tax net income in August of $592,000, compared with a budgeted net income of $398,000. Revenue from the sale of natural gas was $24.3 million, compared with the budget of $24.8 million. Revenue from co-product and byproduct sales totaled $25.1 million, compared with the budget of $11.5 million.