Black touts ‘safer’ oil-by-rail plan for B.C. refinery

'Dead' Northern Gateway pipeline prompts plan B to move bitumen using trains

Victoria businessman David Black spoke to Rotarians in South Surrey Nov. 18 about his proposal for an oil refinery in northwestern B.C.

B.C. oil refinery proponent David Black says his $22-billion proposal won’t die with the apparently thwarted Northern Gateway pipeline – he aims to bring oil sands bitumen across northern B.C. by train instead.

The Victoria businessman, who is majority owner of Black Press and this newspaper, spoke Wednesday at a Rotary Club meeting in South Surrey.

Black’s Kitimat Clean proposal calls for a refinery between Terrace and Kitimat that would process bitumen into gasoline, diesel and other refined fuels for Asian markets.

He said the federal Liberal government’s move to formally ban crude oil tankers from B.C.’s north coast means the Northern Gateway pipeline plan is “pretty much dead” but that shouldn’t block tanker exports of refined fuel, which would be less damaging than a spill of crude or bitumen at sea.

Black said his plan to carry oil by rail will be far safer than the crude oil trains that have been vulnerable to fiery disasters elsewhere.

He said he’s in talks with CN Rail to load rail cars with undiluted bitumen, which would be much thicker – virtually solid – compared to the diluted bitumen that moves through pipelines or the light oil that’s often carried by train.

The bitumen would be heated at the beginning and end of each rail trip to make it flow for loading and unloading from tanker cars. Black argues it would be unlikely to leak or burn if a train derailed.

“It’s safer and way easier,” he said, estimating six trains a day would run every four hours.

Black continues to pursue environmental approvals, and believes that with green lights from regulators and first nations, oil shippers and financiers will come on board.

But his is not the only such proposal.

Pacific Future Energy, led by a Mexican conglomerate, initially tried to buy Black out and has since proposed a similar refinery with the same technology. Its backers include SNC Lavalin and prominent aboriginal advisors.

Pacific Future initially proposed a site in Prince Rupert but Black said that firm is trying to strike a deal with the Kitselas band for the same site Kitimat Clean had chosen.

There are other potential sites with different first nations, he said, but they’re less suitable.

Black also criticized the provincial government’s focus on liquefied natural gas projects.

He said his refinery would generate more permanent jobs and taxes for governments than even an optimistic number of LNG plants.

“Government really dove at this,” he said, adding the province “rolled over” in guaranteeing generous tax treatment to get the industry on board, leaving little future revenue to government.

Too many LNG plants are already being built in Australia and the U.S., he said, while Japan’s shift back towards nuclear power will cut demand.

“I just don’t think there’s much chance,” Black said. “The LNG dream is now fading.”

Black is not concerned that low oil prices will also doom his refinery dream.

He said he believes low prices as well as the U.S. rejection of the Keystone XL pipeline to the U.S. Gulf Coast will make his option for reaching lucrative Pacific markets increasingly attractive to oil firms grappling with narrowing margins, particularly in Alberta’s oil sands.

Black maintains a refinery can’t be built in Alberta itself because of opposition from multinational oil firms that own Texas refineries, and because the large prefabricated modules that can be assembled on the B.C. coast can’t be hauled inland.

His proposal would use an unusual technology – adding $5 billion to the costs – that slashes the carbon emissions to less than one third of a conventional refinery.

Black argues the “greenest refinery in the world” would largely offset the higher emissions of oil sands bitumen and forge a political solution for Canada’s energy policy makers.

“It cleans the whole industry up,” Black said. “We’re not in the dirty oil business any more. We get huge value add. And it takes away the issue of a heavy oil spill at sea.”

Just Posted

Nathan Cullen named Parliamentarian of the Year

Skeena-Bulkley Valley MP won the top-title Nov. 5

VIDEO: Taking to the skies to protect moose in the Cariboo Chilcotin

Conservation Officer Service doubles patrols to oversee moose harvest

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

Central Coast Regional District swears in new Board of Directors

There are three new faces representing our region and two returning directors

VIDEO: Black horse signals ‘sign of peace’ for Tsilhqot’in Nation

Justin Trudeau rides black horse provided by Cooper family

Feds give formal notice for law to end Canada Post strike

Trudeau government ready to legislate employees back to work after five weeks of rotating strikes

Getzlaf lifts Ducks to 4-3 win over skidding Canucks

Vancouver now winless since Nov. 8

Pressure builds for B.C. to recognize physicians assistants

“We can make a difference and I think we’re being overlooked.”

Senators urge Trump to expedite congressional vote on USMCA

The 12 Republican senators are warning of the dangers of getting the trade pact approved in 2019

Bill just one tool to deter foreign interference in Canadian elections: Gould

Bill C-76 is just one means to deter outside interference in Canadian elections

Investigation into B.C. legislature officers began in January

RCMP brought in months after former prison administrator started

Legal challenge filed over high-stakes competition to design $60B warships

The federal government had originally said it wanted a “mature design” for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy.

‘There has to be accountability’: victims of sterilization demand action

Morningstar Mercredi says she woke up from a surgery at 14 and immediately broke down when she discovered the baby she once felt inside of her was gone.

Former B.C. crime reporter pens debut children’s book

Thom Barker channels his giant dog’s phobias into theme exploring critical thinking

Most Read