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

David Black says his $22-billion proposal won't die with the apparently thwarted Northern Gateway pipeline.

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

29th anniversary of the missing Jack family

Tortured family begs tipper to come forward

Charges laid in Vanderhoof hotel homicide

A 24-year-old woman from Spirit River, Alta. has been arrested in connection… Continue reading

Rocky days ahead for Vanderhoof

But sometimes rocky days are the best days

Shovel Lake wildfire grows to 5,000 hectares

The Shovel Lake wildfire has seen substantial growth in the last 24… Continue reading

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

B.C. RCMP say Kinder Morgan protest camp to be dismantled today

RCMP say they will enforce a court injunction today and remove Trans Mountain pipeline protesters who have been camped outside a Kinder Morgan terminal in Burnaby.

Altidore nets 3 as Toronto drubs Whitecaps 5-2

Vancouver falls 7-4 on aggregate in Canadian Championship final

Ottawa intervenes to get B.C. ball player, 13, to Little League World Series

Before immigration issue was resolved, Dio Gama was out practicing the game he loves Wednesday

Pet goldfish invades small B.C. lake

Pinecrest Lake is located between Whistler and Squamish

Chinese medicine practitioner in B.C. facing historical sex assault charges

71-year old Kit Wong practiced acupuncture from his home during the time of the assaults

Quebec sets aside $900 million for companies hurt by U.S. tariffs

Premier Philippe Couillard says his government will make $863 million available over five years

B.C. woman set for trial in Alberta as animal cruelty investigation continues in home province

Karin Adams was discovered with eight dogs in Alberta weeks after having 16 dogs seized in Quesnel

Most Read