Victoria media baron David Black has unveiled an ambitious plan for a $13-billion refinery near Kitimat, which he said could lessen the environmental risk of transporting oilsands crude through Enbridge Inc.'s proposed Northern Gateway pipeline.
Black announced one of the largest construction projects in the province's history Friday, in a move that he said will create jobs for a new generation of British Columbians and better protect the environment from the risk of an ocean oil spill.
The proposed plant would process Alberta's crude into refined products, such as gasoline and aviation fuel, in a sprawling 10-square-kilometre facility on B.C.'s northern coast. Under Enbridge's plan, its pipeline would transport bitumen from the oilsands across B.C. to Kitimat, where it would be loaded onto tankers bound for Asia.
Black's refinery would process the crude before export.
Moving refined fuels by ocean tanker "removes the threat of offshore pollution from a heavy oil spill," said Black. Gasoline and diesel would evaporate in the event of a spill at sea and no "extensive remediation would be required" compared to an oil spill, he said.
Black's surprise announcement was the latest twist in the Enbridge pipeline project, which needs federal approval and begins review panel hearings next month.
Premier Christy Clark is threatening to scuttle the project unless B.C. gets a "fair share" of the economic benefits for shouldering environmental risk.
The refinery won't proceed if the Enbridge pipeline isn't approved, said Black.
The unveiling of Black's refinery appeared to do little to satisfy critics in First Nations, environmental or political groups, each of whom said Friday they remain staunchly opposed to the pipeline regardless of whether Black builds a facility at the B.C. end.
"This doesn't change anything," said Grand Chief Stewart Phillip, Union of B.C. Indian Chiefs president. "The answer continues to be a vehement no. Opposition from First Nations is undiminished."
Black is best known as a community-newspaper tycoon. His company Black Press owns 150 community and daily newspapers in Western Canada and the United States, including Victoria-based publications Monday Magazine and the Victoria News.
His new company, Kitimat Clean Ltd., would seek partnerships and investors to raise $13 billion.
If no one comes forward, Black said he'll try to find the money himself. He's already personally spending millions for the environmental review.
The refinery would be the largest in Canada, capable of processing 550,000 barrels per day to handle the entire capacity of the Enbridge pipeline, said Black.
But analysts were skeptical. "The biggest thing I have a problem with is he assumes the Enbridge pipeline is going to be approved, and everything is going to be piped through right to Kitimat," said petroleum analyst Roger McKnight.
Black said he'd like to begin construction in 2014 and finish by 2020. But McKnight said it will likely take until 2020 or 2030 just to complete environmental reviews.
Reaction from the B.C. government Friday was muted. The premier is on vacation and refused comment. The Energy Ministry said it was awaiting more details. Jobs Minister Pat Bell said he supports and is "excited" about the project.
Black's refinery doesn't change the B.C. NDP's position against the Enbridge pipeline, said NDP critic John Horgan. "There's no markets for the product, no access to the raw material from Enbridge and no community support - it strikes me Mr. Black has a long way to go."
With Rob Shaw, Jeff Bell, Judith Lavoie and the Prince George Citizen
