$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

CRD tickets cyclists who ignore stop signs at Lochside trail, Saanich Road intersection

Many cyclists don’t dismount, use pedestrian-activated crosswalk light

UPDATE: Crews have put out the fire on Crown Crescent

Several firetrucks are on the scene

Japanese knotweed has come to Sooke, and that’s a problem

Invasive plant is a serious threat to waterways and infrastructure

Sooke council pans multiple memorial plaque plan

District should not sell the same bench over and over again, says councillor

Sooke council backs nuclear weapons ban

Mayor believes the municipality’s role includes global issues

VIDEO: Victoria airport guests see dinosaur surprise

Two boys dressed as raptors get a shock when their grandmother comes to greet them

Explicit sex-ed guide for adults mistakenly given to Creston elementary students

The booklet clearly states online and inside that the guide contains sexually explicit information

Driver has $240K McLaren impounded minutes after buying it in West Vancouver

Officers clocked the car travelling at 160 km/h along Highway 1 in a 90 km/h zone

UPDATE: RCMP arrest second person in North Island arson investigation

Police say suspects identified, house fire ‘not random’

Former Vernon Judo coach pleads guilty to child pornography charges

Bryan Jeffrey McLachlan is set to return to court Sept. 4 for sentencing

B.C. Olympic skier sues Alpine Canada after coach’s sex offences

Bertrand Charest was convicted in 2017 on 37 charges

Former Canucks goalie Roberto Luongo to retire

‘Bobby Lou’ calls it a career after 19 NHL seasons

An absurd act of religion

Reader says a blessing at Green New Deal town hall was against the spirit of the proceedings

Man charged in crash that killed B.C. pregnant woman

Frank Tessman charged for 2018 Highway 1 accident where Kelowna elementary school teacher died

Most Read