Canada's Irving Oil scraps refinery project due to economy

24 July 2009 18:02  [Source: ICIS news]

TORONTO (ICIS news)--Canada’s Irving Oil and partner BP will not proceed with a proposed 300,000 bbl/day refinery project in the country’s eastern New Brunswick province because of the difficult global economic and industry conditions, the companies said on Friday.

An 18-month feasibility study concluded that the project was not viable at a time of global economic recession and dampening forecasts for oil  product demand in North America, they said.

Irving Oil first said in 2006 it was studying a new export refinery project at Saint John, adjacent to its existing 300,000 bbl/day refinery. At the time, officials said the project could eventually include downstream petrochemicals and chemicals production.

In early 2008, Irving signed a memorandum of understanding with BP to jointly study the project.

In related news, Shell said this month it planned to close or sell its 130,000 bbl/day refinery in Montreal, Quebec. Last year, Shell cancelled plans for a grassroots refinery at the Sarnia petrochemicals hub in southern Ontario.

For more on BP and Shell visit ICIS company intelligence
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By: Stefan Baumgarten
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