Americas News
Canadian Refinery's Future in Doubt
The future of a refinery on Canada's east coast that produces products including bunker fuel, and an associated marine supply terminal, is in doubt as its owner struggles to find a buyer, according to Nova Scotia news outlet Daily Business Buzz.
Imperial Oil Ltd. (Imperial) put the refinery, located in Dartmouth, up for sale in May because it was not meeting financial targets, and the company now says that despite "expressions of interest from multiple potential buyers," no decision has been made yet about a possible sale.
One industry source, Al Pace, president of Sydco Fuels Ltd., said he doubts the refinery will sell because it needs millions of dollars in upgrades to meet emissions standards and because it has been using relatively expensive North Sea crude oil.
"They've done some upgrading over the years, but with the pollution restrictions now in place and upgrades on other refineries ongoing, to reinvest in an old refinery like that plus buying the expensive Brent Crude, that forces their hand," Pace said.
"I don't know who's going to buy it."
Pace said a marine supply terminal and tank farm in Sydney that would be part of the refinery deal will probably stay open because it is the only terminal in Cape Breton for distributors to refuel their trucks.
Imperial has said it may convert the Dartmouth refinery, which produces 88,000 barrels per day of a range of petroleum products, to a tank farm if it is unable to find a buyer.
Imperial also operates three other refineries, in Nanticoke, Sarnia, and Strathcona, all of which have higher outputs than the Dartmouth facility, according to its website.
