$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.

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

Raeya Evie Duncan was the 100th baby born at Chilliwack General Hospital for the month of May. She is seen here with her parents Alysha Williams and Andrew Duncan on June 12, 2021. (Jenna Hauck/ Chilliwack Progress)
Baby boom in Chilliwack as record number of infants born at CGH in May

‘COVID babies are coming out,’ says dad of 100th baby born at Chilliwack General Hospital last month

Syringes prepared with Pfizer’s COVID-19 vaccine at a vaccination site in Long Beach, Calif., Friday, March 5, 2021. (AP Photo/Jae C. Hong)
Walk-ins welcome at upcoming G.W. Secondary vaccine clinic

Second consecutive Saturday Fraser Health has scheduled a same-day clinic in a Chilliwack school

Migrating sockeye in the Fraser River August 7, 2007. (Fisheries and Oceans Canada)
First Nations, commercial, and recreational harvesters join forces to save Fraser River fish

‘We have to work together to rebuild these stocks while there is still time,’ says delegate

Vancouver courthouse. (Photo: Tom Zytaruk)
Man loses bid to appeal conviction for 1999 rape at Abbotsford music festival

James Redden, 53, formerly of Nanaimo, was found guilty in 2019 following six-day trial

Dozens of demonstrators gathered in March at the Hope Station House, showing support for preserving the 1916 building. (Photo/Christian Ward)
New reports breathe life into efforts to save the Hope Station House

The documents were presented to District of Hope Council at a meeting June 14

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

A worker, at left, tends to a customer at a cosmetics shop amid the COVID-19 pandemic Thursday, May 20, 2021, in Los Angeles. (AP Photo/Marcio Jose Sanchez)
Half of cosmetics sold in Canada, U.S. contain toxic chemicals: study

Researchers found that 56% of foundations and eye products contain high levels of fluorine

Most Read