Wednesday, June 11, 2014

Is There Money in Shipping Refined Products from Oilsands?

Guest blogger: Livia Wiley, SimSci Product Marketing Manager
Pacific Future is pitching a $10-billion oilsands refinery to be built on British Columbia's north coast that will link Alberta's oilsands with Asian markets. The proposal means that refined products, not heavy oil, would be shipped on tankers to Asia, thus limiting the possibility of environmental spills. The proposal currently sits with the federal government, as they are asking for taxpayer funding for this megaproject. Read more here.

The resistance to the Keystone pipeline construction project in the U.S. may make this an attractive alternative. Seeing that this is a "near zero net carbon" refinery and that local First Nations are on-board makes the proposal even more likely. However, initial costs and schedules are just that – initial. Cost competitiveness will always determine the true likelihood for success. And only time will tell.