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MarketWatch: Shell Canada considers building new refinery at Sarnia, Ontario

Last Update: 7:13 AM ET Nov 24, 2006

CALGARY (MarketWatch) — Shell Canada (SHC.T), the Canadian unit of Royal Dutch Shell (RDSB.LN), said Thursday that it’s considering building a new refinery near Sarnia, Ontario.

The refinery would have a processing capacity of between 150,000-250,000 barrels of heavy crude a day, said Shell Canada Chief Executive Clive Mather in a press conference.

“We’re examining how to maximize our potential from our oil sands assets by expanding our manufacturing base in Ontario,” Mather said.

Shell Canada plans to spend around C$50 million in 2007 on pre-development and front-end engineering to determine the viability of such a facility. However, the company hasn’t yet calculated how much the new refinery might cost in total, Mather said.

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