Black says funding lined up for Kitimat Clean refinery

Kitimat Clean Ltd president David Black says all the funding for his proposed oil refinery in the Kitimat Valley is lined up.

Kitimat Clean Ltd president David Black says all the funding for his proposed $25 billion refinery in the Kitimat Valley is essentially lined up.

He made the comments at a B.C. Chamber of Commerce breakfast meeting in Vancouver this morning, where he also suggested that oil transportation is coming to Canada’s West Coast, whether it’s through a pipeline or by rail.

“If B.C. remains set against a pipeline the oil will come to the refinery by rail. CN and the oil companies are keen on this. A great deal of crude in North America is being moved by rail now. The costs are not that different in this case and no permits are required,” said Black.

“The site of the refinery is 15 kilometres from the main rail line to the Rio Tinto Alcan dock and we would need six trains per day, 120 cars in each direction, to bring the same amount of oil as the pipeline… But rail shipping is not as safe as moving by pipeline and is more disruptive. There are dozens of small communities along the line that I’m sure wouldn’t like more trains rumbling through town.”

Between the refinery and the eight pipelines to carry product to a terminal in Kitimat, the total capital costs associated with the project ring in at approximately $25 billion, with a consortium of investors committed to providing the money. Black said that makes this project the largest investment in B.C. history, and would create the most jobs out of any undertaking in the province.

“We are talking about 1,500 direct jobs at the refinery and 1,500 jobs for contractors servicing the facility. During construction, we would require 6,000 workers for a five-year period… Typically there is a one-to-one job ratio with this type of job creation, so that would add another 3,000 indirect jobs,” he said, adding that ownership of the refinery would remain in Canada.

The refinery would be the first in the world to use a technology developed by Expander Energy of Calgary that reduces the greenhouse gases emissions related to processing heavy oil by 50 per cent per barrel. That adds an additional $3 billion to the price tag of the refinery, but Black said it is an important part of the project.

“This will broaden the province’s economy, create thousands of high paying union and non-union jobs, create work for B.C. contractors and pay a high amount of taxes to the province. Best of all it will improve the world’s environment, and that is a key reason why this old newspaper man and his family as so keen on the idea,” he said.

Black hopes to have the refinery operation by 2020, and said finding customers shouldn’t be a problem.

“I have had a lot of discussions with the Far East and there is a lot of interest from a number of countries. There are a variety of reasons they are interested, but the main one is that we can land jet fuel and diesel in their country cheaper than they can make it,” he said.

The presentation came the same day as the B.C. Chamber of Commerce released a poll showing 52 per cent support the refinery and 66 per cent support the plan if an environmentally sound way of transporting bitumen from Alberta to the refinery can be found.

Black’s presentation was augmented by Richard Cook from the Oppenheimer Investment Group who said his company has spent several months lining up financing for the project.

“We have the financing committed to do this whole project,” said Cook.

“We are there from the start to permitting to building.”

That kind of work involves lining up off-takers or customers for the refinery’s products, he added.

Cook also said a successful refinery project would open the doors to other resource-based investments in B.C.

The refinery financing would be in the form of debt as opposed to companies taking out an ownership position in the project.

Black later cautioned that financing agreements in place are of a general nature and that more detailed negotiations are required.

And he’s sticking to a 60-day timetable set about three weeks ago regarding firm project commitments.

– Shaun Thomas, Black Press

Just Posted

Board of Education hires independent consultant to review SD82 reassignments

Review will not change recent decisions but will gather input, says board chair

Prince Rupert marine business adds second catamaran to its fleet

100-passenger Aurora was launched this year for the Rio Tinto Kemano tunnel project

Terrace-area gold project shows strong promise

Juggernaut Exploration hopes this year’s drilling will follow last year’s exceptional program

New protocol will better assist victims of sexual assault

Victims of sexual assault are set to benefit from the completion of… Continue reading

School district remains firm on reassignments

Community calling for halt of decision

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

B.C.’s measles vaccination program gains traction in May

More than 15,000 doses of the MMR vaccine has been administered across the province

B.C. farmers concerned Agricultural Land Reserve changes choking their livelihood

Dozens voice concerns at special meeting hosted on Vancouver Island

UPDATE: Two-year-old involved in Chilliwack pool drowning has died

Toddler was reported to not be breathing as air ambulance called out Thursday afternoon

Family frustrated Terrace dad with advanced cancer must wait weeks for treatment

‘We can see his health declining every day,’ daughter says

Most Read