$13-billion refinery proposed for Kitimat

Victoria businessman David Black, owner of Black Press, is heading up a proposal to build a $13-billion oil refinery in Kitimat

David Black shows a sample of Alberta heavy oil at a news conference in Vancouver Friday.



VANCOUVER – A Victoria businessman is heading up a proposal to build a $13-billion oil refinery in Kitimat.

David Black, chairman and owner of Black Press, announced Friday he wants to build a world scale oil refinery at Kitimat, B.C.

Black told a news conference in Vancouver Friday he is submitting an environmental assessment application to build a “world scale” oil refinery on behalf of Kitimat Clean Ltd., a company owned by Black. The application to the B.C. Environmental Assessment Office is expected this fall.

The proposed refinery would be big enough to process all the diluted bitumen carried by Enbridge’s proposed Northern Gateway pipeline. Black said he has had extensive discussions with Enbridge and other players in the Canadian oil industry, but none has so far offered to back the project.

Black said he will use his own money to finance the proposal through environmental assessment, which he expects to cost several million dollars. After that, he said investors would be needed to complete it, assuming both the refinery and the pipeline receive approval.

He has had preliminary meetings with Kitimat and Terrace councils, as well as the Haisla and Kitselas First Nations in the region. The proposed site is a 3,000-hectare Crown industrial property between Terrace and Kitimat.

Kitimat Mayor Joanne Monaghan spoke by phone to the news conference, offering encouragement for the proposal. But Black acknowledged he does not yet have formal support from communities or investors.

“I see myself as a catalyst to make this happen,” said Black, who first proposed the idea to the province and the industry seven years ago when he was chairman of the B.C. Progress Board.

Black is working with Glenn McGinnis, a consulting engineer and former manager of the Ioco oil refinery in Port Moody.

“We want it [the Kitimat refinery] to be the cleanest and greenest upgrading and refining site in the world,” McGinnis said.

The refinery would produce 240,000 barrels per day of diesel, 100,000 barrels per day of gasoline and 50,000 barrels per day of kerosene or aviation fuel, refined from heavy oil.

Among those attending the news conference was Art Sterritt, executive director of the Coastal First Nations, a group in the Kitimat area that has strongly opposed the pipeline proposal. Sterritt disputed Black’s assertion that a B.C. refinery “solves half of the problem” with exported oil by shipping refined gasoline, jet fuel and diesel in tankers instead of heavy crude. Those products have their own risks, Sterritt said.

Black pointed out that without marine shipments of those fuels, the remote coastal communities Sterritt represents would not be able to function. The lighter fuel products are still an environmental hazard, but they dissipate much more quickly and do not persist for many years like spilled heavy crude, he said.

NDP energy critic John Horgan was also skeptical.

“At this point, it’s a proposal without business partners and without First Nations and local community support,” Horgan said. “It doesn’t change our position [opposing] the Enbridge Northern Gateway project.”

Black said the refinery will mean nearly 6,000 construction jobs over a five-year period, 3,000 permanent jobs at the refinery and tax revenue for various levels of government.

Meantime, a politician in Northern B.C. reacted with skepticism, calling Black’s refinery plan “ridiculous.”

*with videos by Kolby Solinsky

Map site

 

 

Just Posted

EDITORIAL: And if a council meeting was like live theatre…

A news reporter cannot cover a municipal council meeting as if it… Continue reading

Rattlesnake bites dog

Anti-venom used to save pooch

Okanagan-Shuswap weather: Unsettled skies dominate the week’s forecast

A chance of thunderstorms is in the forecast for much of the Okanagan-Shuswap.

B.C. Premier Horgan to make announcement in Keremeos

B.C. Premier John Horgan is scheduled to make an announcement in Keremeos

Princeton RCMP make arrest in “smash and grab” crimes

Police have made an arrest following two “smash and grab” thefts in… Continue reading

Protesters rally in Victoria over newly approved Trans Mountain pipeline

The Still No Consent! No Trans Mountain! 20 kilometre march will end at Island View Beach

Two mudslides close Seymour Arm road in North Shuswap, no one injured

Slides hit Seymour Arm Main Forest Service Road halfway between St. Ives and Seymour Arm

“Our community has had its heart broken”: South Okanagan celebrates life of David Kampe

Community and families members who knew Kampe give tearful addresses

Wildfire burning in coastal forest

A fire beside the Sea to Sky Highway is burning up a steep slope

Lower lake levels could create bumper crop of invasive milfoil

The CSRD board received an update on efforts to suppress the invasive aquatic plant

PHOTOS: Event marks one year since soccer team rescued from Thai cave

Nine players and coach took part in marathon and bike event to help improve conditions at cave

Vernon and Sicamous cannabis stores get provincial nod

Spiritleaf in Vernon will be the Okanagan’s first cannabis store.

Rock climber dies after fall at Stawamus Chief in Squamish

The man had fallen about 30 metres while climbing in the Grand Wall area

Most Read