Saint John, NB – After announcing last fall that it was seriously exploring the opportunity to build a second refinery in Saint John, Irving Oil is starting the environmental permitting process by submitting for registration a Project Description of its proposed new refinery with the provincial and federal regulatory authorities. This filing is intended to initiate the provincial and federal environmental impact assessment processes that are expected to be required for the project. The proposed new refinery, with a capacity of up to 300,000 barrels per day, would be located near the existing Irving Canaport deepwater crude receiving terminal in the Red Head area of Saint John, N.B.

 

The new facility is intended to respond to the need for additional refining capacity in the Northeast, contribute to Canada’s development as an “energy superpower” and New Brunswick’s goal of economic self-sufficiency, and support Saint John’s True Growth strategy. It would add to the competitive position of the New Brunswick energy hub by complementing existing energy infrastructure and create more opportunities for new projects and companies to invest in the region. Together with the existing Saint John Refinery, this new investment would create a combined total of up to 600,000 barrels per day of refining production capacity.

 

A new refinery would cost approximately $5-$7 billion to build. It would create approximately 5,000 construction jobs and 1,000 permanent jobs, as well as generate significant additional employment and business opportunities during construction and operation, including billions of dollars in spin-off activity and the creation of thousands of additional permanent jobs.

 

“Irving Oil has a reputation and a long history of being part of this community,” said Kenneth Irving. “We want to make sure we involve members of our community and that we do a good job of reviewing all aspects of the project that are important to those of us who live and work here. The feedback has been encouraging, so we are moving to the next phase of the project with some optimism.”

 

The provincial and federal governments determine the process that will guide the scientific assessment of the potential environmental impacts, mitigation measures and socio-economic impacts, and the public’s formal input in the process. Environmental assessment under the New Brunswick Environmental Impact Assessment Regulation and the Canadian Environmental Assessment Act will involve a thorough review of the project that is expected to take between 12 and 24 months and will include public consultation.

 

Kevin Scott, Director of Refining Growth for Irving Oil, said, “We remain committed to using the best available proven environmental technology in the proposed second refinery, and we will work with regulatory agencies as this project moves through what we expect will be a very rigorous environmental approval process.”

 

In addition to the formal public involvement, Irving Oil is committed to sharing information and consulting the community on the refinery proposal. The company will hold its first open house for members of the public in February. Members of the public seeking more information on the project are encouraged to visit Irving Oil’s website at irvingoil.com or to call toll free at

1-888-525-1777.

 

Irving Oil will also continue discussions to identify opportunities to collaborate with community organizations and governments in initiatives focused on education and training, building business capacity, and enhancing the quality of life and standard of living in the Saint John area. “We are committed to working together with others so the broader community is able to maximize the benefits from this project,” said Mr. Scott.

 

For example, Irving Oil is a partner in the development of a five-year strategic plan for post-secondary education and research, as part of a community-led initiative to determine the needs of both students and employers in the Saint John region.

 

“The proposed second refinery represents an incredible opportunity for Saint John and New Brunswick to grow and to give people an opportunity to stay here or return home,” Mr. Scott said. Mr. Scott pointed to Irving Oil’s successful track record in major energy project development and operation but cautioned that the final decision to go ahead with the proposed refinery still lies ahead. “We are pleased with our progress so far but we know that the project must receive the continued support of the community, the approval of regulators, and the final investment decision of potential investors before it would proceed.”

 

In addition to focusing on the ongoing environmental and socio-economic studies required for the permitting process, Irving Oil will be moving to the next phase of conducting more detailed engineering studies, as well as evaluating potential partners.

 

This step marks the second major energy project Irving Oil has submitted for registration in recent years. In 2001 the company registered the Canaport LNG project, also in Saint John. That project was the first newly proposed terminal on the East Coast of North America to receive permitting approval, and is currently under construction with partner Repsol YPF. Completion is expected by the end of 2008. In recent years, Irving Oil has been involved with encouraging several energy investments in the region.

 

About Irving Oil
Founded in 1924, Irving Oil is a privately owned regional refining and marketing company with a history of long-term partnerships and relationships. Irving Oil operates Canada's largest refinery, in Saint John, N.B., which is located 65 miles north of the U.S border and has reached production rates in excess of 300,000 barrels per day. The refinery exports over 80 per cent of its production to the U.S., and accounts for 75 per cent of Canada's gasoline exports to the U.S. and 19 per cent of all US gasoline imports. In 2003, Irving Oil became the first oil company to receive a U.S. Environmental Protection Agency Clean Air Excellence Award, for its clean gasoline. Approximately 7,000 people currently work with the company.

 

For more information about Irving Oil, please visit www.irvingoil.com.

Media Contact:
Jennifer Parker
Irving Oil
(506) 202-2992