A second oil refinery in Newfoundland and Labrador would be successful, a feasibility study has concluded.

Newfoundland and Labrador Refining, the project's proponent, announced the results of the third and final phase of the feasibility study in a statement on Wednesday.

"We are pleased to have a clear way forward for the environmental assessment," Brian Dalton, the company's managing director, said in a statement.

The study conducted by engineering giant SNC-Lavalin found that a refinery would be competitive by handling about 300,000 barrels per day.

An undertaking filed with the Newfoundland and Labrador environment department this fall says the planned refinery could handle double that amount.

The refinery "would rank among the largest and most advanced crude oil processing plants in the world," the company said in its latest statement.

The project would cost about $4.6 billion US, plus what the company described as standard owner's costs.

The refinery is planned for Southern Head in Placentia Bay, the same bay that is home to the North Atlantic Refining operation in Come By Chance.

The company noted that the bay offers deep, ice-free waters year-round and is near shipping lanes between Europe and North America.

Newfoundland and Labrador Refining Corp. is backed by Altius Resources Inc., a mining company based in St. John's. The refinery's proponents include Scottish-born billionaire Harry Dobson.