* 550,000-bpd refinery could be economically viable
* Would process Canadian heavy oil, ship products to Asia
CALGARY, Alberta, March 19 A new oil refinery
planned to refine Canadian oil sands crude sent to a Pacific
port by Enbridge Inc's controversial Northern Gateway
pipeline would be economically viable and should be seriously
considered by British Columbia, according to a new report.
The report, carried out by Navigant Consulting for the
government of British Columbia, said the refinery could be built
at a cost of C$13 billion ($12.72 billion), well below the C$16
billion price tag placed on the project by David Black, the
press baron backing the concept.
The 550,000-barrels-a-day plant would easily be Canada's
biggest refinery and would refine crude shipped from Alberta to
the port of Kitimat on British Columbia's northern coast. It
would be the first new refinery built in North America in three
"Navigant's view, based on the information available at the
present time, is that building a refinery on the coast of
British Columbia has economic merit and should be considered
seriously by the Government of the Province," said the report,
dated March 14. "Such a refinery would provide incremental
long-term economic benefits to the region ... (and) would
generate sustainable margins that otherwise would be lost to
Asian purchasers of Canada's oil sands production."
Black, whose Black Press runs 150 newspapers in Canada and
the United States, including the Beacon Journal in Akron, Ohio;
the Honolulu Star-Advertiser; and the Advocate in Red Deer,
Alberta, proposed the facility last year as a way to lower the
environmental risks of shipping heavy crudes from Canada's oil
sands by tanker and to provide jobs in the province's north.
He said the entire project could cost up to C$25 billion,
including the costs of pipelines and tankers.
The Navigant report concluded that there was room in the
Asian market for the refinery's products, which would include
100,000 barrels per day of gasoline, 240,000 bpd of diesel fuel
and 50,000 bpd of jet fuel.
"Navigant concluded from our assessment of the fuel product
balance in Asia that exports from a refinery at Kitimat could
probably be accommodated in the Asian market without disrupting
local spot prices," the report said.
Black said this month he is close to finalizing debt
financing for the project. He is working with Swiss-based