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

Pixabay photo
‘Horrific’ abuse of volunteers and COVID-19 contact tracers must stop, Chilliwack soccer club says

Parents have become abusive after being told COVID-19 rules, email says

Gurkirat Toor has been charged after allegedly pointing a gun at another driver on Oct. 23 in Abbotsford.
Man charged after gun pointed at another driver in Abbotsford

Gurkirat Toor, 21, previously charged with purple-fentanyl bust

The Abbotsford Teachers’ Union stated that local teachers worked without heat on Friday as secondary principals’ and vice-principals’ were at a work-related retreat in Whistler. (Google)
Abbotsford Teachers’ Union says teachers left in the cold on Friday

Abbotsford School District disagrees, saying all buildings were set to 21C on Pro-D Day

The Fraser Valley Health Care Foundation held its inaugural Grand Gala in November 2019 at Harrison Hot Springs Resort. This year’s event will be held online. (Submitted photo)
Fraser Valley Health Care Foundation holds virtual Grand Gala

Second annual event takes place online on Nov. 20, raising funds for local hospitals

Abbotsford author Katrina Wiggins has been shortlisted for the Page Turner Award eBook Award for her young adult novel, Blind the Eyes.
Abbotsford author shortlisted for literary award for young adult novel

Katrina Wiggins’ book Blind the Eyes is about climate crisis and monsters

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A woman walks through check in at WestJet at Pearson International airport during the COVID-19 pandemic in Toronto on Wednesday, Oct. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Strong support for pre-flight COVID testing ahead of upcoming WestJet trial: YVR

Airport is partnering with UBC, which is helping choose the method of pre-flight testing

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

It’s been eight years since Gordon Spencer (pictured), and cousin, ‘Lil’ Bruce Mayo, were gunned down in a home in Langley, and Spencer’s widow is hoping someone who knows something will step up (file)
Eight years on and still no answers in Langley double murder

Wife of victim makes public appeal for people with information to come forward

Langley resident Shaun Nugent, who died in 2019 shortly after he saved a swimmer from drowning, has been awarded a posthumous medal for bravery by the Royal Canadian Humane Association (Courtesy Nugent family)
Langley man who died after saving swimmer receives posthumous medal for bravery

Shaun Nugent rescued woman from Hayward Lake near Mission in July of 2019

Most Read