Natural Resources
October 30, 2006

Minister Pleased With Progress on the Possible Second Refinery

The provincial government is encouraged by the interest and the progress of work being done on the possibility of additional refining capacity being provided in the province.

"The initial stages of the feasibility study on a second refinery for Placentia Bay determined that a new refinery can compete effectively throughout the Atlantic Basin marketplace and the proposed project is now in the final stages of that feasibility process," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "We're happy to see that the proposed project has advanced through to the required provincial regulatory processes."

The Honourable Clyde Jackman, Minister of Environment and Conservation, announced today that the Newfoundland and Labrador Refining Corporation has registered its proposed Southern Head Oil Refinery Project for environmental assessment. The public has until December 4 to provide comment. The company filed a project description with the Canadian Environmental Assessment Agency in September and it expects to have the final stage of a feasibility study completed by the end of this year.

"The proposed project is going through the appropriate channels and is now being evaluated based on environmental considerations and a public consultation process," Minister Dunderdale said. "A significant amount of work and analysis still needs to be done before a project of this type can be given the green light to proceed, but I am well aware of the tremendous economic spin offs of additional refinery capacity and I'm delighted with the progress to date. It's very encouraging."

The proposal is for an oil refinery at the head of Placentia Bay, between North Harbour and Come by Chance. It is expected to have an initial production capacity of 300,000 barrels per day with the possibility of that increasing to 600,000 barrels.

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Media contact:
Tracy Barron
Director of Communications
709-729-5282, 690-1703

2006 10 30                              5:35 p.m.

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