Partners propose bitumen refinery
By The Canadian Press
Published: January 28, 2010 9:29 PM
Canadian Natural Resources Ltd. (TSX:CNQ) is teaming with a smaller partner on a proposal to build a technologically advanced bitumen refinery northeast of Edmonton.
The Calgary-based oil and gas producer said Thursday it will acquire 50 per cent of the assets of North West Upgrading Inc. and they will form a partnership to operate the proposed refinery, requiring approval from the Alberta government.
CNQ didn’t provide an estimated cost for the project or how much it would spend to buy the stake in North West Upgrading, a privately held company formed in 2004.
“We are pleased to partner with NWU and believe that the plan is already well progressed with significant engineering completed to date, the land and permits obtained in an exceptionally favourable location, as well as an NWU management team that has both built and operated similar facilities in the past,” CNQ president Steve Laut said.
The proposed refinery at Redwater would be able to process 50,000 barrels per day of bitumen extracted from Alberta’s oilsands.
Canadian Natural would supply 12,500 barrels per day of its own bitumen production to the refinery.