Canada's North West Redwater breaks ground on diesel refinery

20 September 2013 17:56  [Source: ICIS news]

TORONTO (ICIS)--North West Redwater (NWR) is breaking ground on Friday on an oil sands upgrading and refining facility near Edmonton, Alberta, a media spokesperson for the Canadian energy firm told ICIS, confirming a media report.

The plant will turn bitumen from Alberta’s oil sands into diesel fuel.

The facility northeast of Edmonton is expected to start up late 2016 with an initial processing capacity of 50,000 bbl/day. Capacity will later be expanded to 150,000 bbl/day.

NRW is a partnership between North West Upgrading and energy firm Canadian Natural Resources.

Ian MacGregor, chairman of North West Upgrading, told Canada’s Globe and Mail newspaper that the project would allow the partners to make profit on finished diesel product, thus avoiding the market's price discount on western Canada’s heavy oil.

In addition, processing the bitumen in Alberta would not require building another pipeline such as the controversial Keystone XL project from Alberta to refining markets on the US Gulf Coast, MacGregor said.

The Canadian dollar (C$) 5.7bn ($5.5bn, €4.1bn) North West Redwater project is not a traditional refinery, as it will focus on diesel and will not produce a range of refined products.

According to information on North West Upgrading’s website, the refinery will get its oil sands feedstock from Canadian Natural Resources and from a provincial government agency, the Alberta Petroleum Marketing Commission.

($1 = C$1.03, $1 = €0.74)

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles