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www.northernsentinel.com
Volume 58 No. 11
Oil refinery money in place David Black says he’ll build his own pipeline to carry crude oil from Alberta if that’s what it takes to supply a massive refinery he wants to build on the Dubose plateau north of Kitimat. “I have the financing. That’s not a problem,” said Black last week following a presentation to the B.C. Chamber of Commerce March 6. Black provided an update on his project first announced last August to build a 550,000 barrela-day refinery supplying Asian and other customers with gasoline, diesel and jet fuel among other products. The cost is now in the $25 billion range and Black said he has a general agreement with his company called Kitimat Clean to line up the money through the Swiss-based Oppenheimer Investment Group although more detailed negotiations have to take place. “I hope to sign a financing [memorandum of understanding] within 60 days,” said Black of the debt-financing for the project. But first he needs “I think it would to demonstrate he has customers for the rebe very, very finery’s output and difficult now Black expects to have for Enbridge to a memorandum of understanding, called an win.” off-take agreement, in place within a month. Black wouldn’t comment on whether those potential customers include any of the ten companies who have provided Enbridge with the seed money for its Northern Gateway Pipeline project. It’s those companies who have interests in the Alberta oil sands and want to ship the raw product overseas but who, for now, lack a way of getting their product to the coast. But Black did say the generally accepted business model for refineries elsewhere is for their owners to also own the pipelines supplying the raw product. “Then you’re dealing with suppliers who are locked in,” said Black, adding that it’s a more efficient way to do business. Black wouldn’t comment directly on whether he’s considered asking Enbridge to sell its Northern Gateway project but he has told Enbridge its concept of shipping crude to the coast through a pipeline and then having the unrefined product taken overseas won’t be accepted in B.C. “I’ve thought a lot about that,” said Black. “I think it would be very, very difficult now for Enbridge to win.” Enbridge is now in the middle of extensive public hearings and a final decision to accept or reject the project is expected from the federal government late this year. Continued on page 2
Wednesday, March 13, 2013
1.34 INCLUDES TAX
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The Smithers Storm midget hockey team attempts a goal against the Kitimat Legion Bombers during the zone championship finals on March 7. Smithers would end up taking the game, 4-2. Cameron Orr photo
More PTI questions answered Cameron Orr PTI Group executives were in town for a second community open house to talk about their proposed work lodge just off from Kitimat’s downtown core. The event provided people the chance to catch up on the details of their proposal while also allowing PTI representatives to field questions from the public. Earlier questions included inquiries into the availability of health services for such a large facility. Sean Crockett, the company’s vice president of business development, noted that health services is a government responsibility, however their facilities do enable health services, and by that they mean their facility can be designed to reduce burdens in the emergency room. “We can create space for medical service contractors for physiotherapists, for doctors, for dentists,” said Crockett. That said, he also pointed out that
the workers aren’t coming to Kitimat because of their lodge, but because of the other, major industrial projects being proposed. PTI Group director of business development Bob Greaves said that they have been working with Northern Health in Kitimat to develop ways to provide health services on their site, such as allowing nurses to check blood pressure and provide diabetes support on site. The company also answered questions relating opening their lodge to more public events. Crockett said it’s not necessarily the business they’re in but “with the permission of the community,” they could open up for special events such as hockey tournaments. But, “If that’s competing with a local hotelier’s business, we wouldn’t do that.” Project legacies are still to be worked out but he mentioned possible future uses of their land to be converted to recre-
ational uses such as trails. Their core site though would likely be sold, as a fully serviced lot at the time they’re finished. But they wouldn’t leave behind an abandoned property, he said. PTI Group has purchased one site and has a purchase offer on another for land east of the Kitimat General Hospital, in the Strawberry Meadows area. They propose to construct a workforce lodge that could eventually house up to 2,100 people. They say that the facility would be a five minute walk to the downtown core, which would provide retail benefits to businesses. Crockett said in an ideal world they’d have the first few hundred beds set up by October but because of various factors such as public consultations and the ongoing work to prepare site zoning and work to amend the Official Community Plan — which is taking place with the municipality right now — he expects an opening around April of next year.
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Bobby Weir comes back home ... page 8