Alberta’s oil refinery request prompts renewed interest in Kitimat plan

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

NH representative confirmed that people who received their first dose will be scheduled to receive their second dose within the recommended timeframe.(The Canadian Press/Nathan Denette photo)
Vaccine rollout abruptly halted in Lakes District

Northern Health cites Pfizer shipment delays for the vaccine distribution disruption

This BC Hydro map shows some of the power outages across Northern BC. Many were caused by high winds. (BC Hydro Website)
Power out across much of Northern BC

BC Hydro anticipates some may be without power overnight

Administering naloxone to a person experiencing a benzo-related overdose event won’t help. Naloxone is used to neutralize opioids. (Jenna Hauck/The Progress file photo)
Northern Health warning drug users of potential benzo contamination

The drug does not respond to naloxone, and is being included in street drugs

Vaccinations are set to resume in the small community of Tatchet, according to Lake Babine Nation’s Deputy Chief. (Black Press Media file photo)
Lake Babine Nation vaccine rollout resumes after a short pause

A COVID positive test within the care team had put the vaccinations on hold

Syringe is prepared with one of B.C.’s first vials of Pfizer vaccine to prevent COVID-19, Victoria, Dec. 22, 2020. (B.C. government)
B.C.’s COVID-19 caseload stays steady with 465 more Tuesday

No new outbreaks in health care facilities, 12 more deaths

New Westminster TV production designer, Rick Whitfield, has designed an office in a box for British Columbians in need of a private workspace. (BC Box Office photo)
PHOTOS: B.C. man designs ‘box office’ solution for those working from home

‘A professionally designed workspace on your property, away from the distractions of home’

Chilliwack ER doctor Marc Greidanus is featured in a video, published Jan. 18, 2021, where he demonstrates and describes effectiveness of various styles of masks. (Youtube)
VIDEO: Emergency room doctor runs through pros and cons of various masks

‘We’ve been asked to wear a mask and it’s not that hard,’ Greidanus says.

(Pixabay photo)
VIDEO: Tip to Metro Vancouver transit police helps woman 4,000 km away in Ohio

Sgt. Clint Hampton says transit police were alerted to a YouTube video of the woman in mental distress

A woman types on her laptop in Miami in a Monday, Dec. 12, 2016, photo illustration. THE CANADIAN PRESS/AP/Wilfredo Lee
British Columbia government lax on cybersecurity practices, auditor reports

The audit did not highlight a specific threat, but it found breaches in cybersecurity are increasing globally

Cranbrook Food Bank coordinator Deanna Kemperman, Potluck Cafe Society executive director Naved Noorani and Sunshine Coast Community Services Society executive director Catherine Leach join B.C.’s new Municipal Affairs Minister Josie Osborne on a video call about B.C. gaming grants, Jan. 19, 2021. (B.C. government)
B.C. gaming grants reorganized for COVID-19 priorities

Minister highlights community kitchens, food banks

(Pixabay photo)
‘Cocaine bananas’ arrive at Kelowna grocery stores after mix up from Colombia: RCMP

Kelowna RCMP recently concluded an international drug investigation after finding cocaine in local grocers’ banana shipments in 2019

A new video from NCCIH and BC Northern Health titled ‘Healing in Pandemic Times: Indigenous Peoples, Stigma and COVID-19’ was animated by Joanne Gervais. (Photo Provided By: NCCIH Archives)
VIDEO: Stigma against Indigenous people is a ‘social sickness’

A new short animated video is aiming to educate the public on the stigmatization

A pinniped was attacked by an unseen predator off the shores of Dallas Road Monday night. (Courtesy of Steffani Cameron)
VIDEO: Seal hunting, not being hunted in video shot off Victoria waterfront

Victoria woman captures footage of pinniped activity off Dallas Road

Most Read