Proposed BC oil refinery has economic merit: study

A California consulting firm, Navigant, has found that an oil refinery proposed by David Black to be built on the west coast of Canada “has economic merit and should be considered seriously” by the province of British Columbia. The refinery, with a capacity of 550,000 barrels per day, would provide more significant long-term economic benefits to the region than the export of unrefined bitumen (“unfinished feedstock”). The report also finds that “if configured carefully and managed properly,” the refinery would generate sustainable profits.

Navigant-oil-refinery-study-Kitimat-British-Columbia-distillation-hydrocracking-coke-conversion-EDIWeekly

The report also finds that Black’s estimate of $13 billion for the cost “might be on the high side.”  Navigant arrives at a figure of just $7 billion for “total installed cost” of the refinery. The report was commissioned by the government of British Columbia.

Concerning the design of the proposed Kitimat refinery, the report recommends that it be designed with the capability of manufacturing fuel products for several countries around the Pacific Rim, not just one or two. In this, Navigant finds that the refinery design presented by Black’s company, Kitimat Clean Fuels, is “technically sound.” That design, which would use a combination of hydrocracking and delayed coking, is “well-proven” and widely employed around the world.

The Kitimat refinery proposed would be of the deep conversion/highly complex type, meaning that it would have the ability to convert the heavy residues left in the distillation process of crude oil to lighter products, with little or no fuel oil produced. Profitability is maximized in this type of refinery because of its ability to produce a range of lighter fuel products including propane, gasoline, diesel and jet fuel.

The refinery would not likely be operational before 2020, assuming an early approval.

Did you miss this?

Other Popular Stories

  • BMW to invest 6 per cent of revenue in R&D; plans to streamline manufacturing to pay for research
  • Airbus Helicopters announces new production at Fort Erie plant
  • Commodities firm sues Shell, BP, Statoil for price fixing
  • Only 13% of Canadian manufacturers likely to change export strategy despite trade disputes even though 87% are looking beyond the US market
  • Propellant leak during emergency abort sets back Boeing's spacecraft development for NASA
  • Federal government urged to speak up for nuclear at Paris climate talks
  • New York's ban on fracking gives hope to other opponents
  • BMW unveils i3, the electric car of the future
  • Nuclear emergency response centre for Ontario as countries deal with aging reactors
  • Aerospace companies announce satellite, service contracts
  • Toyota Canada top producer for first time in 2015; RAV4 on a roar
  • Bid deadline today for Canada's new search and rescue aircraft
  • Truckers hopeful about progress on border security, emissions, after Washington summit
  • Artificial leaf converts sunlight, water to fuel
  • Electricity-conducting cement could make runways, roads ice proof
  • Ontario home builders don't like government's inclusionary zoning plan
  • Eleventh hour intervention by Marchionne secured Fiat Chrysler deal
  • Oil exploration gives St. John's NL fastest growing economy
  • Self-Healing Grids Developed
  • Irving Shipbuilding wins $2.3 billion icebreaker contract with navy
Scroll to Top