Kitimat Clean Ltd.
In August 2012, newspaper publisher David Black announced plans to build an oil refinery in the Kitimat Valley to process Alberta oil sands crude delivered to the northwest coast by either rail or pipeline. This project is well positioned to take advantage of Kitimat’s strategic coastal location and development potential in the Kitimat Valley. It intends to ship refined fuels to markets in the Pacific region including the US West Coast and Asia.
About This Project
The Kitimat Clean oil refinery is proposed to be located in the Kitimat Valley, north of the District of Kitimat. This could be the first refinery built in Canada since 1984, providing thousands of jobs for British Columbians, and helping to mitigate the environmental risks posed by shipping heavy crude oil.
The refinery will feature state-of-the-art design, specifically for processing Alberta oil sands heavy crude oil, and engineered to be the cleanest upgrading and refining site in the world.
It will have access to B.C.’s own supply of cheap and plentiful natural gas for power and a steady supply of Alberta bitumen at a fair price. The refinery will also eliminate any risk of a devastating super-tanker spill of oilsands bitumen off the coast. This is because the products transported will be the lighter, refined byproducts of petroleum, such as gasoline, which are easier to clean up and also naturally dissipate in the rare event of a super-tanker spill.
The refinery will process up to 550,000 barrels per day of dilbit (condensate diluent and Alberta oil sands bitumen). It will produce eight petroleum products, including 240,000 barrels of diesel/day, 100,000 barrels of gasoline per day, and 50,000 barrels of aviation fuel per day.
In April 2013, Kitimat Clean signed a Memorandum of Understanding with the Industrial and Commercial Bank of China, which will serve as a financial advisor and cooperate in the financing of the project. In June 2014, Hatch Ltd. was contracted to conduct a basic engineering design, and Expander Energy entered into an agreement with Kitimat Clean to license its FTCrude refining process.
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Construction will employ 6,000 workers for five years. Permanent employment to operate the refinery will be 3,000.