Chinese bank signs on to refinery plan

THE company which wants to build a $25 billion oil refinery complex near Kitimat says it has lined up a Chinese bank to help with the financing.

The agreement is part of a memorandum of understanding signed today in Beijing between Kitimat Clean and the Industrial and Commercial Bank of China (ICBC) which is described as that country's largest.

The memorandum indicates the bank will be the Chinese financial advisor to Kitimat Clean and cooperate in project financing.

Kitimat Clean, owned by Black Press chairman David Black, wants to build a refinery providing fuels for the Asian and Indian markets.

In doing so, Kitimat Clean says it'll be providing jobs in Canada and provide an environmentally-acceptable alternative to exporting Alberta crude to overseas refineries.

"A great advantage of the refinery is that it will prevent the shipment of bitumen in tankers off BC's mid-coast. In addition it will reduce global greenhouse gas emissions because it will replace refineries elsewhere that are built to less stringent environmental standards," says Black.

The oil refinery may also include a pipeline between Edmonton and Kitimat to feed it raw product and a fleet of tankers to transport fuels overseas.

Chinese companies will be involved in the engineering and construction of the refinery which, if the project proceeds as planned, will be manufactured elsewhere and shipped to Kitimat for on-site assembly.

ICBC is the second financial advisor hired by Kitimat Clean.

A representative of the British Columbia Trade and Investment Office was at the memorandum signing.

(Black Press is the parent of The Terrace Standard and other northwestern newspapers.)


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