Irving to invest $100-million to produce ultra low sulphur diesel
SAINT JOHN, NB, May 16 - Irving Oil will be investing $100-million
to enable Canada's largest refinery to produce ultra low sulphur diesel. Ultra
low sulphur diesel has a sulphur content of 15 parts per million (ppm) or
less, a potential 97 per cent reduction from today's industry standard for
on-road diesel, which allows for a maximum sulphur content of 500ppm.
Irving Oil has a track record of meeting clean fuel regulations years
ahead of schedule. The company's low sulphur gasoline averaged 45ppm last
year, 84 per cent lower than the Canadian industry average, and earned the
company the distinction of being the only oil company to receive a United
States Environmental Protection Agency Clean Air Excellence award. Irving Oil
also received an Innovations award from the Canadian Council of Ministers of
the Environment for its clean gasoline.
Each day, Irving Oil exports approximately 175,000 barrels of petroleum
products to the US Northeast, including 100,000 barrels of reformulated
gasoline (RFG). These exports account for 42 per cent of all Canadian
petroleum exports. Reformulated gasoline produced at the Irving Oil Refinery
and imported to the United States accounts for 45.5 per cent of all American
RFG imports. The company's commitment to continually upgrading its refinery
bucks the trend in an industry where the number of North American refineries
has declined by 50 per cent over the last two decades and 43 per cent of
refineries have changed hands in the last decade.
"We've always taken the long-term view with investments," said Kenneth
Irving. "When you approach environmental investments with this forward-looking
mindset, it's much easier to not only achieve improved environmental
performance, but also to find economic opportunities. The continuation of our
track record in exceeding government regulations and industry performance is
the best testament to the sustainability and effectiveness of our company's
long-term approach to doing business. This investment fits with the long term
strategy for economic development in New Brunswick and will further advance
the concept of our province as the region's energy hub, as detailed in New
Brunswick's energy policy."
"The environment of North America's Northeast and the economic prosperity
of New Brunswick stands to benefit greatly from this project, as it has
benefited from projects in the past such as the Irving Oil refinery upgrade
completed in 2000," said Bernard Lord, Premier of New Brunswick. "I'm proud
that New Brunswickers are leading the way toward cleaner fuels, and competing
successfully in one of the most competitive markets in the world."
The Irving Oil Refinery is Canada's largest refinery with a nameplate
capacity of 250,000 bpd. In 2001, the refinery commissioned a $1-billion
upgrade aimed at increasing the facility's ability to refine a greater variety
of crude types, shifting production to lighter, higher value transportation
fuels, and further enhancing environmental performance. Since the upgrade, the
refinery has continued to make the prerequisite investments towards the goal
of producing ultra low sulphur diesel.
On another front, Irving Oil is in the final stages of construction at
its refinery that will allow the company to produce gasoline with a sulphur
content of 10ppm by spring 2004, well ahead of other announced refinery
projects that will bring sulphur levels to 30ppm. This level is just one third
of the 30ppm regulated levels which will come into effect in 2005 in Canada
and in 2004 in the United States.
As recently as April 2003, Irving Oil has sold cargoes of California Air
Resources Board (CARB) grade gasoline into the environmentally stringent
California market. CARB gasoline is extremely low in sulphur, and also meets
other requirements particular to California, most of them related to air
quality requirements. The gasoline is specifically formulated to allow for
ethanol blending at its final destination.
Founded in 1924, Irving Oil is the regional energy processing,
transporting, and marketing company focusing on customer service and supply
chain management. Irving Oil serves customers in Eastern Canada, Quebec, and
New England with a range of finished energy products, including gasoline,
diesel, home heating fuel, jet fuel and complementary products and services.
Irving Oil's 250,000 barrel per day Saint John Refinery is Canada's largest
and produces fuels years ahead of environmental regulations. Irving Oil is the
first oil company to win a United States Environmental Protection Agency (EPA)
Clean Air Excellence Award, which it won for its low sulphur gasoline.