Enough room for 2 new Atlantic refineries: proponent

A companyplanning to build a refinery in southern Newfoundland saysit won't be derailed by Irving Oil'splan to buildits second refinery in New Brunswick.

Newfoundland and Labrador Refining Corp. believes there's plenty of room in the global marketplace for two additional refineries in Atlantic Canada.

Irving Oil officials confirmed Thursday that the company plans to build a new refinery near its existingone in Saint John, although the company is also searching for a financial partner for its single largest private investment in Atlantic Canada's history.

Brian Dalton, a director of Newfoundland and Labrador Refining Corp., said he is still optimistic in the face of competition.

A new refinery has not been built in North America in 25 years and, Dalton said, the market is large enough to accommodate both.

He said Saint John and Placentia Bay the site of North Atlantic Refining's operation in Come By Chance and the prospective site for its plans are the top two ports on the continent for refining traffic.

"You can look in Europe, you can look all along the Eastern Seaboard of North America these two sites just stand out," Dalton told CBC News.

"I don't see it as a head-to-head competition in any event. We both have really good, strategic advantages over competitors in other parts of the overall market."

'Not taking anything for granted'

Kevin Scott, director of refining growth with Irving Oil, said there are limits of what the marketplace can accommodate.

"It's not clear to me whether there's room for two," he said during a conference call with reporters.

"We're not taking anything for granted here. The market will ultimately decide what the right number of refineries are."

Premier Danny Williams has said for months he would like to see a second refinery built within the province.

The Irving plan has, however, set back plans for a refinery in Nova Scotia.

Paul Boutilier, director of energy projects for Nova Scotia Business Inc., said Thursday that a Nova Scotiarefinery is now effectively dead.

Tom Adams, director of Toronto-based Energy Probe, said the Irvings have an edge with efficiency.

"The Irvings have found a way of being very successful in this tough market," Adams said.

"They represent something of a model to beat if someone was intending of dipping their toe into this tough, tough market."

A feasibility report for a new refinery in Placentia Bay is expected to be released in December.

Irving Oil is expected to make a decision on its plans in early 2007.