Meridian Energy Group, Inc., has signed a Letter of Intent (LOI) with Watco Companies under which Watco is set to serve as the Main Rail Management Contractor for the Davis Refinery, a crude oil refinery in North Dakota, with ongoing discussion for future developments.
“The Watco Team is excited to build our relationship with Meridian Energy and capitalize on the additional service opportunities the venture has to offer,” said Rob Thrall, vice president of Business Development at Watco. “We see a great fit with our experience and synergies from our current locations with the future partnership of these locations and the surrounding communities.”
Watco, headquartered in Pittsburg, Kan., has experience in improving efficiency and asset reliability to reach overall refinery operational excellence and project certainty, officials said.
“The rail management and overall infrastructure services that Watco will provide to the Davis Refinery project is just one more measure Meridian has employed to ensure that the Davis Refinery will set the standard of the Lowest Achievable Emission Rates (“LAER”) in the industry,” representatives said in a statement.
Meridian has initiated site preparation and grading at the site of the Davis Refinery. The company is moving forward with final design and equipment fabrication and procurement with full construction set to resume in 2019.
“The core values of Watco align perfectly with Meridian and its commitment to both the community and the growth strategy we have set out to achieve,” said Lance Medlin, Meridian EVP of Projects on Watco. “We are pleased to have partnered Meridian with Watco and we are looking forward to developing the Davis Refinery with their support.”
Regarding the design and operational benefits of this collaboration, Dan Hedrington, principal and senior project manager for Short Elliott Hendrickson Inc., said: “This is extremely exciting to see two such highly regarded and forward thinking companies come together to impact the industry in such a positive manner.”