MANDAN, N.D. — The only oil refinery in North Dakota is positioned for a $125 million facelift to increase its capacity for low-sulfur diesel fuel and to comply with federal environmental standards, the Associated Press reported.

The San Antonio-based Tesoro Corp. said it plans to invest that amount in the Mandan, N.D., refinery over the next two years. About $80 million will be spent on increasing the refinery's capacity for ultra-low sulfur diesel by 2,000 barrels a day and upgrading other production to meet federal standards.

"It will not actually increase our gasoline-production capability," Leif Peterson, the refinery's personnel manager, told AP. "But we have to make these improvements to meet these EPA regulations."

The remaining $45 million will be spent to totally shut down the refinery to make improvements, upgrades and other work that cannot be completed while the refinery is in operation, Peterson said.