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.

BC legislaturekitimat

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey seniors call Seniors’ Centre Without Walls, a new-to-B.C. program

‘Crazy coincidence’ saw program connect soon after COVID-19 pandemic hit

Surrey pushing the poor out of Whalley, public hearing speakers say

‘There is a war on the poor here in Surrey,’ resident Dave Diewert tells city council

IHIT investigating death of Surrey woman

Injured woman was taken to SMH early Tuesday morning

Charges laid in 2019 single-vehicle crash in Surrey that killed young soccer star

Dilpreet Sandhu, 19, faces eight charges in early morning crash that killed Brandon Bassi

Surrey Mounties seize guns, drugs and cash from Guildford residence

One man was arrested but no charges have been laid as investigation continues

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

COVID claims 23rd Langley Lodge patient, making it the deadliest outbreak in B.C.

Coronavirus kills another senior at Langley care home, bringing B.C. total to 166

Family of dead B.C. football star urge changes to mental health policies in hospitals

Uko family disappointed in actions of Regina hospital, hosting public funeral service this weekend

22 new COVID-19 test-positives, one death following days of low case counts in B.C.

Health officials urged British Columbians to ‘stand together while staying apart’

Help the ‘Cloverdale Reporter’ continue its mission to provide trusted local news

Facing changes together: Your community, your journalists

John Horgan says COVID-19 restrictions won’t be eased regionally

B.C. Liberals urge ‘tailored’ response based on infections

Feds get failing grade for lack of action plan on anniversary of MMIWG report

‘Instead of a National Action Plan, we have been left with a Lack-of-Action Plan’

Maple Ridge woman fights WorkSafe BC over police widow’s pension

Dalila Vroom says husband, Const. Rob Vroom, died as a result of PTSD from time with Abbotsford PD

B.C. ranchers, lodge operators say Indigenous land title shuts them out

Tsilhqot’in jurisdiction affects grazing, access to private property

Most Read