Canada’s Liberal Environment Minister Steven Guilbeault has officially ended the environmental review of a proposed $11-billion oil refinery near Kitimat, British Columbia.
The project, introduced in 2016 by Pacific Future Energy, aimed to process 200,000 barrels per Day of Alberta oil transported through the now-defunct Northern Gateway pipeline, the Western Standard reports.
The refinery was designed to export products like gasoline, diesel, and jet fuel to Asia. A separate facility near Edmonton was also planned to handle 200,000 barrels daily. The project was tied to the Northern Gateway pipeline’s route, which the federal government blocked in 2016.
This decision marks another blow to those advocating new ways to move Alberta’s oil to global markets. Supporters of the refinery included Stockwell Day, a former federal opposition leader and Alberta cabinet minister who had served on Pacific Future Energy’s board of directors.
Pacific Future Energy’s CEO, Samer Salameh, informed the Impact Assessment Agency of Canada (IAAC) in December that the company would no longer pursue the project. Guilbeault confirmed the cancellation of the environmental assessment in February 2024.
In a letter, Steven Guilbeault wrote, “You confirmed that Pacific Future Energy Corporation does not intend to carry out the project. This letter provides you with notification that I have terminated the environmental assessment for the project.”
The project had faced years of delays and minimal updates. In 2019, Canada introduced stricter environmental regulations under the Impact Assessment Act, replacing previous rules. Since the refinery was submitted for review in 2016, it fell under the old system.
However, any attempt to restart must comply with the updated standards.
The refinery was pitched as a way to refine oil domestically before shipping it, addressing concerns raised by opposition groups. It was set to use carbon capture and storage (CCS) technology and a 200-megawatt natural gas plant to limit emissions.
Stockwell Day’s involvement brought political attention to the project. As a former federal minister of international trade and a strong proponent of expanding trade with Asia, he supported efforts to bring Canada’s oil to international markets.
Pacific Future Energy’s website lists various oil, solar, and renewable energy projects, but no statement has been made regarding the refinery’s cancellation. Efforts to contact Day for comment have not been successful.
This cancellation adds to the growing list of stalled or terminated oil export projects on Canada’s West Coast, limiting the country’s ability to connect Alberta’s oil to overseas markets.
