Quote:
Originally Posted by burn_this_city
That was an expansion of an existing refinery, and $10B probably got them 2-300kbpd more. Plus money goes much further in the gulf coast than it does in Canada, due to labour costs, and labour productivity. Kitimat is a crappy place to build a refinery compared to Texas.
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It's a whole new train, so the fact that its an expansion isn't really going to save money, except to the extent they already had the land ... which I imagine isn't a significant cost, especially in Kitimat.
I've never been part of building a refinery. However I suspect the logistics probably are tougher in N BC, but not THAT much more. You need to bring in hardware, from outside countries by vessel. Kitimat is going to receive that hardware the same way you would in the Gulf, via some dock. However I do agree aggregating the labour will definitely be more expensive and challenging.
I do see the expansion is only 300kb/d, not 600. So good point that it's only half of what I said. However nobody in that group is exactly known for controlling costs very well
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Anyway my point still stands that if someone put a refinery there, its a clever way of jacking Alberta crude producers in the same way, but on a much bigger scale that the BC premier is trying to do.