Business Facilities - June 2008 - (Page 44)

BUSINESS REPORT New Brunswick ruary, roughly 50% of the physical construction was complete, and about 70% of the overall site had been developed. By summer of 2008, an estimated 700 additional jobs will be created to aid in the completion of the facility. Perhaps the biggest new development in New Brunswick is the proposed construction of the Eider Rock refinery, which would be the second Irving Oil refinery in St. John. Irving Oil was founded by K.C. Irving in 1924 and is still owned and operated by the Irving family, employing more than 7,000 people. Remarkably, the existing refinery in St. John is the largest in Canada, producing over 300,000 barrels of petroleum products per day. In fact, more than 75% of the The Mactaquac Dam is a hydroelectric dam built on the Saint John River in New Brunswick and operated by NB Power corporation. Canada’s Export Leader In 2006, New Brunswick’s exports were valued at $10.4 billion, up from a record-breaking $9.4 billion in 2004. The province’s exports currently surpass those of Nova Scotia, Prince Edward Island, and Newfoundland put together. In fact, 49% of all Atlantic Canadian exports come from New Brunswick, and 90% of the province’s exports go to its largest trading partner, the United States. Exports account for 41% of the provincial GDP, making New Brunswick Canada’s most tradeactive province. With 56% of its exports being energy products (nearing Alberta’s 70% figure), New Brunswick is a major eastern North America energy contender. refinery’s output is exported to New England, and Minister of Energy Keir notes “six out of ten cars in Boston are fueled by Irving Oil.” Like the existing refinery in St. John, Eider Rock is projected to produce 300,000 barrels per day. Having begun the extensive permitting process in January 2007, construction was originally set to commence in 2009; that estimate has since been pushed back to 2010. Should the project go forward, the refinery would be operational by 2015. The facility will be built at an estimated cost of $7 billion, and the construction alone will create 5,000 new jobs. Once the facility is running, 1,000 permanent jobs will be created. Eider Rock will be the first new refinery built in North America since 1984. New facilities like Canaport and Eider Rock are “huge projects,” states Keir, and New Brunswick “has a community of folks who see the opportunities” presented by them. BP, a leading oil and gas company with worldwide operations, also sees the opportunity inherent in the Eider Rock refinery project. On March 17, 2008, the company (Continued on page 53) 44 JUNE 2008 PHOTO CREDIT: BUSINESS NEW BRUNSWICK announced its agreement to work with Irving Oil on the engineering and design of the proposed facility, contributing $40 million to the $100 million design phase that is currently is underway. The company also has announced that it may form a joint venture with Irving Oil if the facility construction goes forward as planned. “We are excited that a company of BP’s caliber sees the potential in our region and in this project to meet the need for a reliable and secure supply of refined products for the northeast,” says Kenneth Irving, president of Irving Oil. The multi-year proposal process for Eider Rock is the result of “the rigorous permitting process outlined by our Federal and Provincial Governments,” says Kevin Scott, Irving Oil’s Director of Refining Growth. Indeed, the environmental impact of the new refinery is of the utmost concern to New Brunswick officials and to Irving Oil. The proposed refinery is being designed with environmental concerns as a top priority, and the existing Irving refinery already captures its carbon dioxide

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Business Facilities - June 2008 Contents First Word Snapshots Metro Spotlight: Austin, TX The Greening of America Winds of Change in the Berkshires Hot Logistics Locales Metro Spotlight: New Mexico Borderplex Hollywood on the Louisiana Bayou Idaho: Gem State's Economy is Glittering Mayor's Reports New Brunswick, Canada's Export Leader Virginia: Where Business and Fun Come Together How Green Is Your Site? Maine's New Maritime Marketing Message Corporate Moves: Alabama Advertiser Index Ask the Expert

Business Facilities - June 2008

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