The Globe and Mail reports today that, “Irving Oil Ltd. and partner BP PLC have shelved plans for an $8-billion refinery (known as Eider Rock) in Saint John, based on a stunning 30-year forecast that North American gasoline consumption has peaked for the foreseeable future. …An Irving executive said the partners concluded they simply wouldn’t make a reasonable return on their proposed multibillion-dollar investment.”
“The family-owned oil company unveiled a proposal three years ago to build a 300,000-barrel-a-day facility to serve the northeast United States.”
“The Irving-BP decision is a blow for New Brunswick’s dream of becoming an ‘energy hub’ for eastern North America.”
The CBC adds that, “Premier Shawn Graham said the province has still achieved some success in positioning itself as an energy hub in eastern North America. He points to the new Canaport LNG terminal that just opened in Saint John.”
When the plans for the second refinery were first reported on in October 2006, the CBC noted that, “Irving Oil already operates a large refinery in Saint John, and its output accounts for 75 per cent of Canada’s gasoline exports to the U.S.”
The Globe and Mail article is at https://secure.globeadvisor.com/servlet/ArticleNews/story/RTGAM/20090724/wirvingprint0724.
The October 2006 CBC report is at http://www.cbc.ca/canada/new-brunswick/story/2006/10/04/nb-newrefinery.html.