17 March 2008

Irving and BP to partner on Saint John refinery

While the second refinery proposed for Newfoundland has hit a cash snag, the proposed refinery expansion at Saint John New Brunswick gained a new partner on Monday.

BP will contribute US$40 million under a memorandum of understanding with Irving Oil to look at the design, feasibility and engineering for the new refinery.

Irving Oil conducted initial feasibility work and informal public consultation in 2006, and has been engaged since January 2007 in permitting, public consultation, and engineering design for the proposed 300,000 barrel per day refinery. The refinery would be situated close to Irving Oil's existing 300,000 barrel per day refinery and the existing Irving Canaport deepwater crude oil terminal which receives VLCC cargoes of crude oil and is located 65 miles (105 km) from the US border.

This next phase of engineering, design and feasibility work, combined with ongoing permitting and community engagement activities represents over US$100 million of investment over the next 12-15 months.

-srbp-

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