Minister says refinery deal is good for the province

Mines and Energy Minister Paul Dicks said the announcement by the Competition Bureau to modify restrictions which prohibited the sale of Come By Chance refinery products in other Canadian provinces is good news for the people of this province.

This marketing restriction was placed on the refinery in 1986 by Petro Canada, the previous owner.

"This is something that the province has been advocating for many years now," said Mr. Dicks. "As a province, we have always maintained that this restrictive covenant was not in the best interests of the people of this province as it lessened the competitiveness of the industry in the region as a whole."

The minister said the modification gives North Atlantic Refining Limited (NARL) access to new markets.

"This agreement will enable the refinery to market surplus product to other Canadian markets," said Mr. Dicks. "It represents a new supplier of products and should benefit all concerned because the availability of new products should lead to more competition in the total Canadian market, particularly in Eastern Canada."

Mr. Dicks said the refinery has always been able to effectively market petroleum products in the province. As well, they have been competitive in the light fuel oil, marine diesel and propane markets, and this will continue.

The minister said the Come by Chance oil refinery continues to make a significant contribution to the provincial economy.

"This industry employs approximately 700 full time workers and this number increases to about 1,200 during maintenance, and salaries are estimated to be in the order of $40 million annually," said Mr. Dicks. "The value of exports are in excess of $750 million annually and the net income to the provincial economy is in the range of $100 million."

Media contact: Gary Callahan, (709) 729-4890.

2001 01 04                              3:35 p.m.