Petro-Canada revives Edmonton refinery upgrade with $1.2 billion plan
Last Updated: Thursday, December 11, 2003 | 4:07 PM ET
CBC News
The $1.2 billion proposal disclosed Thursday replaces a more expensive plan cancelled earlier this year.
"The total dollar figures are significantly less than the amount we projected last spring, when we put the brakes on the original upgrading concept because of concerns over costs," said Ron Brenneman, CEO.
Under the new proposal, Petro-Canada will team up with Suncor Energy Inc. (TSX:SU)in a 10-year deal that will see the companies sharing production and refining work on the planned 57,000 barrel a day project.
The deal envisions:
- Petro-Canada shipping at least 27,000 bbl/day of bitumen from is MacKay River oil sands plant to Suncor's Fort McMurray facility;
- Suncor processing the Petro-Canada bitumen on a fee-for-service basis;
- Suncor providing Petro-Canada with another 26,000 bbl/day of sour crude;
- Petro-Canada upgrading and refining the combined 57,000 bbl/day in Edmonton.
Assuming regulatory approvals, the deal will take effect in 2008.
The $1.2 billion investment will pay for coker expansion, additional hydrogen production and sulphur-handling facilities in Edmonton.
Petro-Canada's early plans for the refinery called for a $4 billion to $5 billion investment that could process 170,000 bbl/day of bitumen.
It's taking a $140 million charge ($85 million after tax) in the fourth quarter to cover the write-down of engineering and conversion costs from the original refinery plan.
Shares of Petro-Canada gained 70 cents, closing at $60.03 on the TSX.
Share Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Accused in blast that killed Alberta mom handled her funds
- Seniors float above Montreal's Quartier Latin
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students and province to resume talks
- Lip-dub marriage proposal an internet hit
- Syrian regime denies role in Houla massacre
- B.C. NDP calls for unity in fighting coast guard closure
- Canadian Pacific strikers face back-to-work legislation
