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
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
Further information about the feasibility study and Newfoundland and
Labrador Refining Corporation, including its founding shareholders, may
be accessed at
Brian Dalton (Director)
Roland Butler (Community Inquiries),