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St. John refinery plans collide with Bush
There might have been a better week for privately held Irving Oil to set the regulatory ball rolling on its plans to double refinery capacity at its Saint John, New Brunswick, complex.
It announced Jan. 25 it had begun the permitting process for a second 300,000 barrel-per-day facility, which could come on stream in 2012 or 2013.
The existing 300,000 bpd refinery accounts for 75 percent of Canada’s gasoline exports to the U.S. and almost 20 percent of all U.S. gasoline imports.
The new plant is being designed to send the bulk of its motor fuels output to the U.S. Northeast, with distillate destined for Western Europe.
Bush targets 20 percent reduction But the disclosure came only three days after President George W. Bush potentially undercut conventional refiners by setting a target of cutting annual U.S. gasoline consumption by 20 percent over 10 years through a five-fold increase in renewable fuel use and 5 percent from “reforming and modernizing” fuel economy standards for cars.
A spokesman for Irving agreed the plans for the C$7 billion refinery had to incorporate such strategic shifts, but he said the plant is being designed to produce clean products from lower-cost crudes which should be able to survive reduced U.S. gasoline consumption.
New Brunswick Premier Shawn Graham said the new refinery would be a world leader in the use of environmental technology.
If built, the refinery will be the first in North America in 25 years, generating 5,000 construction and 1,000 full-time jobs.
The New Brunswick Department of Environment will decide in February whether it will order a full review, which would likely take up to two years.
—Gary Park
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