Tue, March 13, 2007
By HANK DANISZEWSKI, SUN MEDIA
A proposed refinery for the Sarnia area should substantially boost Ontario’s refinery capacity and could ease the tight supply of gasoline, says a Shell Canada official.
Shell Canada has proposed a refinery project with a capacity for refining 150,000-250,000 barrels of heavy oil each day from the Alberta tar sands.
Last month a fire sidelined the Imperial Oil refinery at Nanticoke which normally refines about 118,000 barrels a day. The fire triggered temporary gas shortages in some areas and high prices across the province which still persist.
“The reality is supply is tight in the Ontario region. That’s one of the things that makes this project attractive because it would boost the security of supply,” said LeighAnne Richardson, communications co-ordinator for Shell Canada.
Ontario now has four refineries — four in the Sarnia area and one in Nanticoke — which have a total capacity of 474,000 barrels a day.
That exceeds Ontario’s average demand of 372,000 barrels a day but Beth Lau of the National Energy Board said supply is fairy tight since the refineries products other than gasoline and are not always running at capacity.
The new Shell refinery could cost $6 to $8 billion and would be the first new North American refinery in decades. It would be located in St. Clair Township next to the company’s existing refinery.
The new facility would be a change since Ontario’s existing refineries process lighter oil from Canada’s east coast.
Shell Canada has committed $50 million to study feasibility of a new plant near Sarnia but Richardson cautioned the company is considering other options including adding refinery capacity in Alberta.
A public meeting on the proposed St. Clair Township site will be held this month.
ONTARIO OIL REFINERIES
Daily capacity in barrels
Sarnia
Imperial 121,000
Shell 70,000
Sunoco 85,000
Nova 80,000
Nanticoke
Imperial 118.000
Total 474,000
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