Houston, 17 August (Argus) — Canadian newspaperman David Black has proposed building a 550,000 b/d refinery in British Columbia to process Alberta oil sands-derived crude, using dilbit that would be taken off of Enbridge's controversial proposed Northern Gateway pipeline.
The $13bn Kitimat Clean project, which plans to begin construction in 2014 and begin operations in 2020, is submitting an environmental assessment application with Canadian regulators, the company said today.
Black did not disclose how the proposed project would be funded. But he said capturing and refining Canadian crude in Canada would be a better environmental option than putting heavy crude on the water to Asian markets because it “removes the threat of offshore pollution from a heavy crude oil spill.”
The proposed Kitimat refinery would produce 240,000 b/d of distillates, 100,000 b/d of gasoline and 50,000 b/d of aviation fuel from 550,000 b/d of dilbit. The project would also include a natural gas cogeneration facility for steam and electricity.
Kitimat Clean would also produce sulfur and petroleum coke to be sent by rail to Ridley Island or loaded at Kitimat for export. Diluent would be returned to Edmonton via a proposed Enbridge pipeline.
The project would also create jobs, Black said, while giving Canada a better slate of options for Alberta crude, most of which is currently exported to the US.
British Columbia has recently agitated for better fiscal and environmental benefits from the proposed Northern Gateway project, a proposed pipeline connecting Alberta to Canada's west coast and Pacific crude export markets.
Black owns many weekly newspapers throughout Alberta and British Columbia, Canada, and several newspapers in the US, including Ohio's Akron Beacon Journal and the Honolulu Star-Advertiser.
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