Alberta Premier Rachel Notley91裸聊视频檚 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 project, arguing that only a coastal refinery is a viable way to add to the province91裸聊视频檚 capacity to export refined fuels.
91裸聊视频淯nfortunately the refinery cannot be located inland,91裸聊视频 wrote Black, who has developed a refinery design that could be supplied with heavy crude by rail or pipeline from Alberta91裸聊视频檚 oil sands. 91裸聊视频淭he 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.91裸聊视频
LNG Canada91裸聊视频檚 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 91裸聊视频渆xpressions of interest91裸聊视频 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:
RELATED:
With the Northern Gateway and Energy East oil pipelines cancelled and Trans Mountain91裸聊视频檚 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 Notley91裸聊视频檚 declared intention to buy more conventional oil tanker rail cars, transporting bitumen in solid form called 91裸聊视频渘eatbit91裸聊视频 has been explored to reduce the risk of spills on land.
Black91裸聊视频檚 Kitimat refinery plan attracted a copycat bid from , whose directors include former Canadian trade minister Stockwell Day and former Assembly of First Nations national chief Shawn Atleo.
Pacific Future has borrowed Kitimat Clean91裸聊视频檚 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.91裸聊视频檚 North Coast, effectively blocking crude exports to Asia.
tfletcher@blackpress.ca
Like us on and follow us on .