Alberta’s oil refinery request prompts renewed interest in Kitimat plan

Publisher David Black pitches Rachel Notley on B.C. coast option

Alberta Premier Rachel Notley’s invitation for proposals to build new refinery capacity has renewed interest in a new-generation oil refinery proposed for the Kitimat area.

Black Press publisher David Black wrote to Notley Monday to pitch his Kitimat Clean project, arguing that only a coastal refinery is a viable way to add to the province’s capacity to export refined fuels.

“Unfortunately the refinery cannot be located inland,” wrote Black, who has developed a refinery design that could be supplied with heavy crude by rail or pipeline from Alberta’s oil sands. “The capital cost to build a large, brand-new refinery inland is so high that it is never economically viable. That is why all major export refineries in the world are located on an ocean coast.”

LNG Canada’s natural gas export facility at Kitimat plans to use processing modules built and shipped from Asia, and any new refinery in B.C. would be expected to use the same approach.

Notley called for “expressions of interest” last week for new refining capacity, as the Alberta oil industry struggles with lack of pipeline capacity and a depressed price for its oil exports in the only available export market, the U.S.

Alberta already has four heavy oil upgraders and four refineries, including the Sturgeon Refinery near Edmonton, the first to be built in the province in more than 30 years.

RELATED: Alberta buying its own rail cars to move crude oil

RELATED: Ottawa’s B.C. coast oil tanker ban reviewed by Senate

With the Northern Gateway and Energy East oil pipelines cancelled and Trans Mountain’s expansion project to Burnaby held up by a court decision, Notley has searched for alternatives including rail and new refining to break out of the political landlock that has surrounded the Alberta oil sands.

With the cancellation of the Northern Gateway project and the federal government poised to pass more restrictions on environmental assessment of energy projects, the focus has shifted to rail transport of crude oil. In addition to Notley’s declared intention to buy more conventional oil tanker rail cars, transporting bitumen in solid form called “neatbit” has been explored to reduce the risk of spills on land.

Black’s Kitimat refinery plan attracted a copycat bid from Pacific Future Energy, whose directors include former Canadian trade minister Stockwell Day and former Assembly of First Nations national chief Shawn Atleo.

Pacific Future has borrowed Kitimat Clean’s approach of using a new oil refining technique that avoids production of petroleum coke, reducing the greenhouse gas impact compared to conventional heavy oil refining.

Backers of another Alberta-to-B.C. pipeline proposal, Eagle Spirit Energy, were in Ottawa last week to call for the Trudeau government to cancel its pending legislation that would ban crude oil tankers from docking on B.C.’s North Coast, effectively blocking crude exports to Asia.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Kent surprised, concerned by $10M RCMP deficit

The district has been trying to get B.C. to pay for an additional RCMP member for months

Man who once killed a fellow inmate convicted of threatening guard at Kent

No prison time for threat nine years after MMA-style beating death in Maple Ridge

BREAKING: Vehicle fire on Highway 1 between Chilliwack and Abbotsford

One westbound lane blocked after 11:30 a.m. on Friday leading to traffic delays

Fraser Cascade students vape more often than average B.C. youth

Fraser Health’s Dr. Alexandra Choi shared her concerns around vaping, and what Kent could do about it

UFV Town and Gown dinner raises more than $245,000

Of the total raised, $100,000 will go toward a new Peace and Reconciliation Centre

VIDEO: Agassiz, Harrison honour Remembrance Day

The annual ceremony took place at AESS, followed by a moment of silence at the Agassiz cenotaph

VIDEO: B.C. man trapped under ATV for days shows promise at Victoria hospital

Out of induced coma, 41-year-old is smiling, squeezing hands and enjoying sunshine

Ski resorts selling mountain water is a risky move, critics say

Alberta allowed ski resort in Kananaskis Country to sell about 50 million litres to third party

Sportsnet looks at new options for Coach’s Corner time slot, post-Don Cherry

Spokesperson says Hall of Fame feature on tap this weekend after co-host’s firing

Grand Forks residents protest on bridge to call for ‘fair’ compensation after 2018 floods

Demonstrators also criticized how long it has taken to be offered land deals

B.C. taxi drivers no longer exempt from wearing a seatbelt

Before, taxi drivers were allowed to forego a seatbelt when driving under 70 kilometres an hour

Car dash covered in papers not an excuse for speeding, Delta police warn

After pulling driver over for speeding, police found his speedometer blocked by a stack of papers

B.C. woman seeks return of jewelry box containing father’s cremated remains

Sicamous RCMP report handmade box was stolen from a storage locker

Vancouver police officer charged with sexual assault in apparent off-duty incident

Jagraj Roger Berar, 51, of Surrey, charged in incident alleged to have happened in Whistler

Most Read