Newspaper magnate David Black is proposing a $13 billion oil refinery to be built in Kitimat to process oil from the Northern Gateway pipeline before shipment.
Black’s company, Kitimat Clean Ltd. is submitting an application to “. . .build a world scale oil refinery at Kitimat BC.”
“The refinery will have the capacity to process all of the output of the planned Enbridge Northern Gateway pipeline,” said the company in a statement.
“The refinery will be state-of-the-art and designed specifically for processing Alberta oil sands heavy crude oil. We want it to be the cleanest and greenest upgrading and refining site in the world.”
The plant would be able to process 550,000 barrels per day. Diluent would be returned to Edmonton through Enbridge’s secondary line.
If approveD construction would begin in 2014 and finish six years later.
Black’s company says the refinery would make shipping from Kitimat safer.
“First, the refinery removes the threat of offshore pollution from a heavy crude oil spill. Transportation of refined fuels is much safer. Gasoline, kerosene and diesel all evaporate. No extensive remediation would be required if there ever were an accident.”
The constructions phase would create 6,000 jobs. Three thousand direct jobs would remain after the plant was running.
There is some push back. Art Sterritt, executive director of the Coastal First Nations, says the environment would be threatened by the refinery.
Black had briefed the Premier Christy Clarks months earlier on his proposal. There is no word on her response.
Image of aerial view of the city of Kitimat, British Columbia, Canada. Take by Kitimat
11 Comments
Mark
Why not consider building the refinery near the source, in Alberta, and ship finished product east and south as well as to Asia? Wherever it goes, North America as a group, and Canada specifically, needs to build some more modern refineries. The US Clean Air act has effectively precluded new refinery construction there, resulting in old plants being kept open far beyond their component design life.
art
To C Armstrong.
With all due respect, Endbridge does have its problems. That said , most of the leaks in the USA are from pipelines that were aquired with the aquisition of the us company American pipelines. Would it not seme plosible that our north american governments should put a best before date on all pipelines and having manditory rules in place to soniscope all pipelines to find the weak spots befor ruptures happen. All the most sensitive locations could be replaced at a predetermined time. Canada needs to sell the product so instead of nixing the project lets find a solution to minimise the risk.
trevormarr
agreed! There is a will, there is a way!
LAMB
It is about time that CANADA start producing refined products for the International Market instead of just giving away the crude for others to refine and sell back to Canada. Lets keep the jobs HERE in CANADA, not the USA or CHINA ! ! ! !
trevormarr
yes I hope we have learned our lesson from our forests! There is more benefit from Seconday products rather than just selling Primary Products. The Government would be wise to allow this to happen ASAP with proper planning being done, giving more revenue and benefit to Canada versus for other nations on OUR resources.
mcnite
This sounds like a somewhat logical way to reduce the risk to BC’s (and Canada’s) shores and not threaten the livelihood of all those people who live on the coast (yes, it’s not just a pretty place to live – this is where people earn a living).
But it’s a little short-sighted. If a refinery is a solution, why not build it at the tarsands and then the existing pipelines could take away the somewhat safer product without increasing the risk of spills more than it already is.
trevormarr
…reasonable, there could be numerous pipelines laid at the same time with different pipelines for each product, but it will require a larger Right-of-Way to be acquired..
Chris Armstrong
The credibility of geographically challenged Enbridge is deservedly and absolutely ZERO ! Enbridge lies ! The proposed Northern Gateway Pipeline would be a guaranteed disaster. Enbridge’s obscenely incompetent TRACK RECORD tells the whole story: more than 800 spills in 10 years = UNBELIEVABLE INCOMPETENCE ! In my opinion, their top executives should be in jail.
trevormarr
I do agree with a previous comment that most of the Enbridge leaks can be traced to lines that existed previous to Enbridge owning them and there is a need for pipeline replacement regulations to either close them and/or replace them. Used pipelines are apparently just as sketchy to buy as are used cars!
Put regulations in place and it is a win-win.
Randall Krysta.
I think this is great. Now we will see if BC is tree hugging or hungry for jobs and long term thinking. If you think the risk is too great with a pipeline then think of the repercussions of a train wreck in the Fraser Canyon with 150 cars of crude on board. One way or another the crude will go to market. Why not encourage the most jobs from the final decision?
trevormarr
I am 100% behind refining this Alberta Oilsands product in Canada, however, why are we settling on Kitimat for the refinery? it is too landlocked… why not Prince Rupert, open water shipping West and South?