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Media magnate David Black’s daring proposal to build a massive refinery in Kitimat on the northern British Columbia coast may be getting the cold shoulder outside the province — but inside it’s stirring some interesting debate about how to capture economic opportunities from a large and growing oil-and-gas sector that is largely run from Alberta.
Those giving it guarded backing include Kitimat City Council. Mayor Joanne Monahan said Wednesday she could support the refinery plan because it would bring jobs to the north coast while avoiding the shipment of thick, tarry bitumen by tanker through B.C.’s treacherous coastal waters. Ms. Monahan has remained silent on the controversial Northern Gateway pipeline proposed by Calgary-based Enbridge Inc. that would end in Kitimat.
In corporate Vancouver, the plan is attracting lots of commentary and is seen as worthy of a close look, said Jock Finlayson, executive vice-president and chief policy officer at the Business Council of Business Columbia.
“I think it’s a healthy development even if it doesn’t come to fruition,” he said. “It’s interesting and it adds a dimension to the whole discussion around economic development in the energy sector.”
And according to Neil Godbout, managing editor of the Prince George Citizen, the plan, proposed by Mr. Black and his company, Kitimat Clean Ltd., is “crazy” but also “tantalizing,” as it addresses Premier Christy Clark’s desire to gain further financial benefits from the Northern Gateway pipeline and would position the province as a major player in the global refining business.
“Regardless of whether Kitimat Clean ever sees the light of day, Black’s plan is a bold suggestion to turn a problem into an opportunity, rather than just opposing the pipeline without offering alternatives,” Mr. Godbout writes.
Mr. Black, a successful B.C. entrepreneur, said last Friday he wants to submit an environmental assessment application for a 550,000 barrel-per-day refinery to process all the output of the Northern Gateway pipeline. The refinery would be specifically designed to process Alberta heavy crude oil from the oil sands and sell refined products in Asia.
Mr. Black is convinced the refinery would reduce the threat of offshore pollution from an oil spill because transportation of refined fuels is safer and is looking for financial backers.
For the rest of this column, please go to the National Post website: http://business.financialpost.com/2012/08/22/media-mogul-david-blacks-kitimat-refinery-proposal-stirring-b-c-energy-debate/