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

Ponoka developing long-term guide on transportation issues

Safety is the top concern that residents want addressed as master plan is generated

Ponoka hosting Winter Games torch relay

The Canada Winter Games torch relay is coming to Ponoka

PHOTO: Eyes turn to heavens to witness super blood wolf moon

These two photos show the lunar eclipse about 30 minutes apart from each other.

Ponoka Stampeders zero for two against Stettler Lightning

Stamps prepare for Sunday home game against the Cochrane Generals

New Canada Food Guide nixes portion sizes, promotes plant-based proteins

Guide no longer lists milk and dairy products as a distinct food group

Pleaded guilty: Ex-Alberta teacher gets 3 years for sex offences against kids

Rhett Lundgren admitted to a sexual relationship with a 17-year-old in Red Deer

Alberta teacher jailed after admitting to child pornography offences

Computers and other devices seized from his home and classroom revealed hundreds of images and some videos of child porn

China demands US drop Huawei extradition request with Canada

China detained two Canadians on Dec. 10 in an apparent attempt to pressure Canada to release Meng

Hollywood announces 2019 Oscar nominations

Netflix has scored its first best picture nomination, something the streaming giant has dearly sought

Edmonton Police advise delays expected for Tuesday pro pipeline convoy

A pro-pipeline truck convoy is expected Tuesday morning on the Anthony Henday in Edmonton

Ponoka RCMP charge Eckville man with impaired driving

Other Ponoka RCMP files include another impaired driver file, and mischief to vehicles file

Jason Kenney disputes expense allegations while MP

Questions over his residential expense claims from his time as a cabinet minister in Ottawa

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

Most Read