By REBECCA PENTY
LAKE LOUISE (Bloomberg) -- Irving Oil is
boosting its ability to ship crude by rail from Alberta to the
nations East Coast, according to CEO Paul Browning. The
company is building infrastructure to load 40,000 bpd of heavy
oil from Alberta onto trains in a venture with Kinder Morgan
Energy Partners and Keyera Corp., Browning said at a
The company can already offload 145,000 bpd from rail cars
at its refinery in Saint John, New
Brunswick, and is using foreign-flagged vessels to import
midcontinent crudes from the Gulf Coast, he said. Thats
cheaper than sourcing global grades by ship and will also
support plans by Irving to sell North American oil to markets
as far as India, he said.
Saint John will become one of the only ports in the
world thats connected by world-class rail and pipe and
marine access to North American crude, Browning said.
Irving is joining with TransCanada on a $282.8 million
marine terminal in Saint John, part of a vision to export
rising supplies of oil-sands bitumen via TransCanadas
proposed $11 billion Energy East pipeline from Alberta to the
As Irving accesses cheaper oil supplies, its boosting
its competitiveness as a refiner on the East Coast, a region
where about 1.6 MMbpd of refining capacity has closed in
recent years because of lower North American demand for fuels,
Browning said. Irving accounts for 80 % of Canadas
exports of petroleum products and 20 % of United States
imports, he said.
Increasingly when youre talking about East Coast
refining, youre talking about
Irving Oil, Browning said, adding the companys
Saint John refinery may soon be the only refinery located
north of New York City and east of Quebec City.
The refinery has a capacity of 298,800
bpd, according to figures compiled by Bloomberg. The
companys largest supply of oil comes from Newfoundland
and all its natural
gas comes from Nova Scotia, Browning said.