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Alberta Asks Private Sector to Build New Refinery

December 14, 2018

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Expressions of Interest (EOI) accepted until February 8, 2019

Written By Darrell R. Peterson, John N. Craig, Q.C., and Kieran F. Ryan

On December 11, 2018, the Alberta government issued an Expression of Interest (EOI) to determine private sector interest in building or expanding a refinery in Alberta to use more Alberta heavy oil. The invitation to submit an EOI extends to local, national or international energy sector companies and the government intends to give priority to projects that will maximize the value of Alberta’s resources, as well as provide broader economy-wide benefits. Submissions must be received by February 8, 2019, and must meet the following minimum requirements to be considered for review:

Submissions that meet the minimum requirements will be reviewed based on the following nine criteria:

1. Business plan
2. Project timing
3. Technology and project configuration
4. Feedstock and refined products infrastructure
5. Proponent’s capability
6. The project’s economic and financial viability
7. Economic benefits to Alberta
8. Environmental performance
9. Participation of Indigenous communities

The EOI must also contain the value of Government of Alberta support being requested and describe the form and manner of risk, costs and benefits sharing between the project partners and the government.

Alberta’s Premier Rachel Notley stressed that a new refinery must provide a return on investment for Albertans and diversify the way the province uses its energy resources. Premier Notley went on to say "We need to see jobs for Albertans, we need to see the participation of Indigenous communities and we need to see sound engineering, design and financial plans."

Once the submissions close in February, the government will use the results to inform its next steps, which may include issuing a Request for Proposals (RFP) for a refinery or refinery and affiliated infrastructure project.

It is important that companies interested in submitting an EOI consider the following in their application:

Feedstock Supply and Product Marketing

Regulatory and Environmental

Indigenous Communities

Financing

Capital Projects

Deadline for EOIs is February 8, 2019

The window to submit an EOI is under two months and will close quickly. Companies that are interested in submitting an EOI will benefit from Bennett Jones’ experience in serving clients on some of the largest and most complex oil and gas development projects in the country. In addition, our Government Affairs and Public Policy group can provide insight and practical steps on working with key government officials and participating in an efficient regulatory approval process.



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