18 December 2006

Second refinery costed, deemed feasible


Newfoundland and Labrador Refining's proposed Placentia Bay refinery will cost CDN$4.6 billion, according to a news release from the company.

The story made headlines in the United Kingdom over the weekend, including The Sunday Times.

If built, the proposed heavy oil refinery will process 300,000 barrels per day initially with a 15% rate of return. [Note: It isn't clear from the NL Refining statement if the feasibility study concluded that the project is feasible and will provide a base-line 15% ROR or if the project would be considered feasible if it provided a 15% ROR.]

In addition to appointing a vice-president commercial recently, NL Refining has engaged Susan Hollett of Hollett and Sons to conduct consultations on the project.