NEWS RELEASE - 2006-05-09
NEWFOUNDLAND AND LABRADOR REFINING CORPORATION ADVANCES TO STAGE TWO OF REFINERY FEASIBILITY STUDY
Newfoundland and Labrador Refining Corporation (NLRC) announces
that it is proceeding to the second stage of a feasibility study for a
new oil refinery in Placentia Bay, Newfoundland and Labrador, Canada.
The study area in Placentia Bay is strategically located next to ice-free, deep-water shipping lanes and in proximity to potential crude oil supplies and refined product markets in Europe and North America. The Placentia Bay region also offers a competitive workforce that has successfully completed several large construction projects over the past decade.
Industry Review and Market Analysis
The results from the Stage One market study and industry analysis have concluded that there is a significant projected shortage of complex refining capacity in both the European and North American markets. The natural advantages offered by the NLRC study area has been noted as a potentially significant competitive advantage for a new refinery versus other proposed sites in the Atlantic Basin.
The configuration that has been proposed and that will be pursued involves the design and construction of a large new refinery that would rank among the most advanced and complex crude oil processing plants in the world. Cambridge Energy Research Associates provided the key market related inputs into the stage One study.
Crude Oil Feedstock Recommendation
The Stage One findings suggest that the best market opportunity for a new refinery in the Atlantic Basin is one that focuses on efficient processing of medium to heavy sour crude oil feedstocks. Such crude oil types are typically priced at a discount despite representing the bulk of global oil reserves and an increasing share of global crude oil production.
Refined Products Recommendation
The optimal suggested product mix is one that maximizes production of transportation fuels, especially ultra low-sulphur diesel and jet fuel, as there are projected shortages for these products in markets in both Europe and North America.
Stage Two of the feasibility study is scheduled for completion by the third calendar quarter and will include the commencement of environmental assessment and regulatory work, site selection, and detailed configuration and component selection.
NLRC also wishes to acknowledge ongoing feedback and comments from individuals, communities and regional organizations with respect to social, environmental and safety considerations. NLRC is committed to open communication and is grateful to those who have already provided important local knowledge into the feasibility study process.
Further information about the feasibility study and Newfoundland and Labrador Refining Corporation, including its founding shareholders, may be accessed at
Media Contacts:
Brian Dalton (Director)
brian@nlrefining.com
The study area in Placentia Bay is strategically located next to ice-free, deep-water shipping lanes and in proximity to potential crude oil supplies and refined product markets in Europe and North America. The Placentia Bay region also offers a competitive workforce that has successfully completed several large construction projects over the past decade.
Industry Review and Market Analysis
The results from the Stage One market study and industry analysis have concluded that there is a significant projected shortage of complex refining capacity in both the European and North American markets. The natural advantages offered by the NLRC study area has been noted as a potentially significant competitive advantage for a new refinery versus other proposed sites in the Atlantic Basin.
The configuration that has been proposed and that will be pursued involves the design and construction of a large new refinery that would rank among the most advanced and complex crude oil processing plants in the world. Cambridge Energy Research Associates provided the key market related inputs into the stage One study.
Crude Oil Feedstock Recommendation
The Stage One findings suggest that the best market opportunity for a new refinery in the Atlantic Basin is one that focuses on efficient processing of medium to heavy sour crude oil feedstocks. Such crude oil types are typically priced at a discount despite representing the bulk of global oil reserves and an increasing share of global crude oil production.
Refined Products Recommendation
The optimal suggested product mix is one that maximizes production of transportation fuels, especially ultra low-sulphur diesel and jet fuel, as there are projected shortages for these products in markets in both Europe and North America.
Stage Two of the feasibility study is scheduled for completion by the third calendar quarter and will include the commencement of environmental assessment and regulatory work, site selection, and detailed configuration and component selection.
NLRC also wishes to acknowledge ongoing feedback and comments from individuals, communities and regional organizations with respect to social, environmental and safety considerations. NLRC is committed to open communication and is grateful to those who have already provided important local knowledge into the feasibility study process.
Further information about the feasibility study and Newfoundland and Labrador Refining Corporation, including its founding shareholders, may be accessed at
Media Contacts:
Brian Dalton (Director)
brian@nlrefining.com
1-888-570-3442
or
Roland Butler (Community Inquiries),
roland@nlrefining.com
1-888-570-3442