The North West upgrader could not only bring new jobs and money to Sturgeon County. St. Albert may also snatch a piece of the diesel cake.
“Anything like that that comes into our area can only be seen as beneficial. It will have spin-off benefits to the region,” said chamber of commerce chair Darel Baker.
Baker attended Wednesday’s Sturgeon County’s Economic Development Board fall business breakfast.
The breakfast addressed the recent sanctioning of the $5.7-billion Phase One bitumen refinery in Sturgeon County, and its economic benefits for the region.
Once construction is completed, the North West Redwater Partnership Refinery is expected to produce about 150,000 barrels of diesel a day.
Baker said the refinery will offer an opportunity for St. Albert to grow some of its light industrial development or complement activities at the refinery.
The city could also benefit from permanent employees who may choose to live in the community.
“There will be new companies to help perform, existing companies that will get additional work, more jobs on a permanent basis ... it will be good for the economy.”
Construction for the refinery was originally supposed to start in 2008, but the global recession caused plans to be halted.
It will now begin in early 2013 and is expected to finish by 2016.
Vice president of regulatory affairs for North West, Doug Bertsch, said Alberta’s economy will profit from producing the finished diesel product over sending it to refineries in the United States.
“You can argue that it’s cheaper to refine there but consider the transportation cost and the benefit of taxes,” he said.
“Sending products away, those taxes, benefits and jobs are gone to that location, eventually forever … . You can only send bitumen to regions that have upgraders or refineries while you can send diesel everywhere.”
He added that the U.S. market is expected to grow as an exporter of oil and could become a serious competitor to Canada.
Diesel is a developing market, it’s easier to export and it has a less significant impact on the environment in case of a leak, he said.
“It allows Alberta access to greater markets. Some of the (Asian) Eastern Tigers use diesel primarily. Gasoline is less of a commodity to them,” he said.
“India and China are outstanding examples and Alberta looks to head those markets.”
Coun. Cameron MacKay was the only St. Albert representative at the breakfast.
MacKay said he wanted to congratulate Sturgeon council for achieving a long-standing goal.
He said the refinery would bring numerous economic opportunities to the region, which he expects to grow substantially over the next 30 years.
And St. Albert offers a few unique features that could be of benefit in coming years.
“We have a really good commercial corridor here for truck traffic, we are convenient to the Villeneuve airport, which could play a role in the future, and we have a community comprised of highly educated individuals and it’s a great place to live,” he said.
MacKay said employees might want to settle in St. Albert, and light industrial companies and service businesses could move to the community to serve the refinery.
“What the city has to do, we just have to make sure that the land is available for those opportunities when they come,” he said.
He added that residents don’t have to worry about diesel and oil smells. The refinery was technologically and environmentally up-to-date and located far away from the city. The prevailing winds blow toward the east, he noted.
A more detailed look at the refinery’s impact on the Sturgeon region will be published in Wednesday’s paper, Nov. 28.
