Danny Williams, Premier of Newfoundland and Labrador, and Natural
Resources Minister Ed Byrne, announced today that a private company,
Newfoundland and Labrador Refining Corporation, has begun a feasibility
study for establishing a new oil refinery in the province in the upper
Placentia Bay area.
"We are very excited with this feasibility study which has tremendous
economic implications for the province," said Premier Williams. "We
committed in our Blueprint to pursue opportunities to expand the
refining capacity in the province and, indeed, our government has
undertaken a study to determine the potential in this regard.
Newfoundland and Labrador Refining Corporation's announcement to
commence a feasibility study signals their confidence in the potential
for further capacity and I look forward to the results."
The feasibility study is timely because a shortage of oil refining
capacity worldwide has created strong market demand. The study area has
been selected on the basis of its strategic location and the efforts of
the province of Newfoundland and Labrador in encouraging and promoting
the building of new oil refining capacity in the province.
Newfoundland and Labrador Refining Corporation cites Placentia Bay as a
strategic location and a natural choice as the basis for the
feasibility study considering its skilled workforce, established
ice-free, deepwater shipping lanes and proximity to both potential oil
supplies and large markets for refined products along the east coast of
North America. The provincial government and Newfoundland and Labrador
Refining Corporation have entered into an agreement during the study
period which enables the company to begin site analysis and to conduct
a feasibility study.
"We know there is tremendous potential to expand and develop many areas
of our resource industries, including the oil and gas sector.
Worldwide, oil refining capacity needs expansion, and Newfoundland and
Labrador is a prime location for a new refinery. With our province's
oil and gas expertise and growing industry, expanding our oil refining
capabilities will further enhance and strengthen the sector," said
Minister Byrne.
The three-stage feasibility study will include analysis of the
appropriate slate of refined products, potential supplies of crude oil,
refinery layout and its engineering requirements. It is expected to
take approximately 42 weeks to complete and will be funded entirely by
Newfoundland and Labrador Refining Ltd. at an estimated cost of US $7.0
million. The optimal size of a proposed refinery will be determined as
part of the feasibility study, but the initial concept envisions
capacity of approximately 300,000 barrels per day.
Newfoundland and Labrador Refining Corporation, in explaining that
working with local communities will be a key part of the study and any
subsequent work stated, "The guidance and experience of neighbouring
communities will be a critical part of the feasibility study,
particularly with regards to specific site selection and environmental
design. We have begun initial discussions with the mayors and councils
of the neighbouring communities. Additional meetings are being arranged
over the coming weeks and opportunities for communication and
discussion will be ongoing throughout the study period."
Newfoundland and Labrador Refining Corporation is a provincially-based
company with founding investors that include local natural resources
company Altius Resources Inc. and European entrepreneurs with proven
track records in both equity and debt finance arrangements for
development projects. NorCan Consulting Limited will manage the
feasibility study. It is a Newfoundland and Labrador based company with
extensive working knowledge of the oil and gas industry in the
province. NorCan also has diverse international project management
experience in the construction and expansion of oil production and
refining facilities.
Additional information about the feasibility study and Newfoundland and
Labrador Refining Corporation, including its founding shareholders, may
be accessed at www.nlrefining.com.