$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

 

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Cindy Foggit plays the lead role of Eliza in Passion and Performance’s film production Eliza: An Adaption of a Christmas Carol. (Courtesy of Rachel Paish)
Victoria adult dance studio releases modern adaption of A Christmas Carol

Instead of usual stage performance, dance studio turns to film

Braden Holtby’s new mask designed in collaboration with Luke Marston and David Gunnarsson. (Mike Wavrecan photo)
Vancouver Island Coast Salish artist unveils new mask for Canucks goalie

Braden Holtby’s new mask features artwork by Luke Marston inspired by the legend of the seawolf

Comox-based cinematographer Maxwel Hohn’s new documentary captures the lives of Vancouver Island’s coastal wolves. Photo courtesy Maxwel Hohn.
New mini-documentary shot on Vancouver Island echoes the ‘call of the coastal wolves’

Photography heavyweights from B.C. come together for Maxwel Hohn’s second wildlife documentary

The 2021 Victoria Film Festival includes Vancouver Island produced feature film All-in Madonna. The festival looks a bit different this year, but film-lovers can still expect a full and diverse lineup. (Courtesy of VFF)
Victoria Film Festival returns with virtual viewing

Lineup features 50 films including Vancouver Island-produced All-in Madonna

Joy Sharpe holds a picture of her late husband Ray while posing for a photograph with the Sybil Andrews painting ‘hauling’ before donating it to the Campbell River Hospice Society. (Submitted photo)
$6 painting turned into $10,000 charity windfall

A 1952 original Sybil Andrews painting donation fetches Campbell River Hospice Society a nice return

Dr. John Hooper is the new conductor of Island Voices. Photo supplied
Island Voices welcomes new conductor

Dr. John Hooper to lead mid-Island based choir

Jorie Benjamin does a modern dance performance to ‘La Vie en rose’ by Édith Piaf, Louis Gugliemi and Marguerite Monnot, choreographed by Elise Sampson during the Cowichan Music Festival’s Highlights Concert at the Cowichan Performing Arts Centre on March 1, 2020. (Kevin Rothbauer/Citizen)
Cowichan Music Festival cancelled for 2021

The festival had already been limited to solo performances only for 2021

<em>Chinook Salmon: Breaking Through</em> by B.C.’s Mark Hobson was selected among 13 entries as the winner of the Pacific Salmon Foundation’s Salmon Stamp Competition.
Stained-glass lighting casts a win to B.C. salmon artist

Painting of chinook is Mark Hobson’s third win in annual contest

Apollonian means “serene, calm, or well-balanced; poised & disciplined”. The natural photo art for the album includes Vancouver Island mountains, rivers and beaches. Scenes from the Cowichan River, Witchcraft Lake, Pipers Lagoon, Wall Beach and other popular Island recreation destinations accentuate the album. (RICHIErichieRichie Music Publishing photo)
Serenity Now! Richie Valley debuts third LP dubbed Apollonian

Apollonian means “serene, calm, or well-balanced; poised & disciplined”

Victoria artist Noah Layne is conducting online workshops on portrait drawing as part of the Metchosin ArtPod’s About Face portrait show. (Photo courtesy of Noah Layne)
Metchosin Art Pod doing an about-face

Renowned artist Noah Layne hosting online classes in portrait drawing

This weekend Amy Pye is holding a virtual book launch for her latest children’s book, <em>Bruce the Silly Goose</em>. (Photo courtesy Amy Pye)
Victoria writer and illustrator pens children’s book about COVID-19 safety

Amy Pye to hold online book launch for ‘Bruce the Silly Goose’

The pantomime ‘Snow White and the 5 Dwarfs’ has been cancelled due to COVID-19 restrictions. (Submitted)
Pantomime cancelled in Cowichan due to COVID restrictions

A partnership of the Cowichan Musical Society, the Shawnigan Players, and the Mercury Players.

A rendering shows the entrance planned for the Hornby Island Arts Centre. Image supplied
Work on Hornby Island Arts Centre to start this month

Community worked with award-winning architectural firm on design

Most Read