The Financial Post reports in its Tuesday edition that David Black plans to build a $22-billion refinery on the coast of British Columbia. The Post's Geoffrey Morgan writes that Mr. Black says now that TransCanada's Keystone XL and Enbridge's Northern Gateway pipeline proposals have been shelved, his proposed refinery is the best option for Albertan oil exports.
Mr. Black says he does not need a pipeline to build and operate his proposed 550,000-barrel-per-day Kitimat Clean refinery, for which he expects to file applications for federal and provincial regulatory approvals this year.
He says, "You're going to have to focus on what it takes to get a West Coast exit for your oil, and God knows a West Coast exit is far more lucrative than a southern or an eastern exit."
Senior oil sands producers have been unwilling to sign contracts with Kitimat Clean because, Mr. Black says, their executives did not know if the project would ever be built. Kitimat Clean has been unable to get financing without signed contracts with major oil sands producers.
Producers have had their hopes of new export pipelines dashed in the past two weeks, but Mr. Black is hopeful they will now take another look at his refinery proposal.
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