Irving may slow construction on New Brunswick refinery

Nov 29, 2008 01:00 AM

Irving Oil may slow construction on its planned C$ 7 bn ($ 5.7 bn) new refinery at Saint John, New Brunswick, according to a report, as it looks to break work on the planned 300,000 barrel per day facility into two phases.
Closely held Irving is looking at breaking the project into two 150,000 bpd tranches, each costing C$ 4 bn and each taking up to four years to complete with construction beginning in 2011. The company had originally expected to complete construction by 2015.

The report quoted comments from Kevin Scott, Irving's director of refining growth, who said the revisions would make the planned refinery "more viable at a time when many energy projects are being delayed or cancelled".
A final investment decision on the new refinery, dubbed Eider Rock, is expected in 2009. The facility would be in addition to Irving's existing 300,000 bpd refinery at Saint John.

The report said Irving is extending the construction of the project because of global competition and rising capital costs.
British oil major BP has partnered with Irving on the design and engineering for the Eider Rock project, which would be the first new refinery built in North America in a generation.

Source / AFX News Limited