The two companies will also investigate the possibility of forming a joint venture to build the refinery should they decide to proceed.
Irving Oil conducted initial feasibility work and informal public consultation in 2006, and has been engaged since January 2007 in permitting, public consultation, and engineering design for the proposed 300,000 barrel per day refinery.
The refinery would be situated close to Irving Oil's existing 300,000 barrel per day refinery and the existing Irving Canaport deepwater crude oil terminal which receives VLCC cargoes of crude oil and is located 65 miles (105km) from the
This next phase of engineering, design and feasibility work, combined with ongoing permitting and community engagement activities represents over $100m of investment over the next 12-15 months. The proposed refinery is expected to cost at least $7bn.
According to BP, a final investment decision is not expected before 2009. If permitting approval is received and an investment decision is made to proceed, site preparation would begin in 2010, and full-scale construction would begin in 2011 with start-up expected in 2015.
‘This refinery project is of great interest to BP because of its ideal location close to the markets of the north eastern US where product supplies are increasingly in deficit,’ commented