NEWFOUNDLAND AND LABRADOR REFINING CORPORATION
Feasibility Study
Newfoundland and Labrador Refining Corporation (NLRC) announced on February 08, 2006 that it has begun a feasibility study concerning a potential new oil refinery in Placentia Bay, Newfoundland and Labrador, Canada. The feasibility study concluded that a 300,000-barrel-per-day oil refinery would currently cost $4.6-billion (U.S.), plus standard owner's costs, and would rank among the largest and most advanced crude oil processing plants in the world. Such a refinery in Placentia Bay appears to be economically feasible with a base-case 15 per cent rate of return indicated based on a number of inputs, including the company's conservative long-term refining margin outlook.
The project proposal is timely because of limited of oil refining capacity worldwide and strong market demand for refined petroleum products. The feasibility study area in Placentia Bay has been selected because it is a strategic location that offers natural competitive advantages over locations in the world being considered by others in the refining industry. In addition, the province of Newfoundland and Labrador has encouraged and promoted the building of new oil refining capacity in the province.
Study Area
The study area is located at the head of Placentia Bay, which is a strategic location and is a natural choice for the feasibility study due to many factors including the presence of skilled local workforce, established ice-free, deepwater shipping lanes, and proximity to both potential oil supplies and large markets for refined products along the east coast of North America and in Europe.
Environmental Assessment and Approvals
The guidance and experience of neighbouring communities has been a critical part of the feasibility study, particularly with regards to site selection and environmental considerations. On April 30th 2008 NLRC received a positive decision from the Canadian federal authority regarding its proposed new oil refinery project in the Placentia Bay, following a similar environmental approval issued by the Newfoundland and Labrador provincial government in January of 2008.
The decision was based upon public input and internal review of the EIS.
For further information regarding the project and study area please visit www.nlrefining.com.
Proponents
The founding investors in NLRC include Newfoundland and Labrador based Altius Resources Inc. and distinguished European entrepreneurs with proven track records in both equity and debt finance arrangements for development projects.
"We know there is tremendous potential to expand and develop many areas of our resource industries, including the oil and gas sector. Worldwide, oil refining capacity needs expansion, and Newfoundland and Labrador is a prime location for a new refinery. With our province's oil and gas expertise and growing industry, expanding our oil refining capabilities will further enhance and strengthen the sector."
- Premier Danny Williams, Feb. 8, 2006
Additional information about the feasibility study and Newfoundland and Labrador Refining Corporation, including its founding shareholders, may be accessed at www.nlrefining.com.