Irving Oil and BP Will Not Proceed With Proposed Second Refinery

28-Jul-2009 - Canada
BP and Irving Oil announced they will not be moving forward at this time with the proposed second refinery in Saint John, New Brunswick, as a result of global economic and industry conditions. The joint technical and commercial feasibility study that the two companies have been conducting over the last 18 months concluded that the project was not viable at a time of global economic recession and dampening forecasts for petroleum product demand in North America. "It became clear, particularly over the past year, that the market conditions for refining have changed since BP and Irving Oil entered this memorandum of understanding," said Iain Conn, chief executive of BP's refining and marketing business. "We are, therefore, unable to move forward with an investment of this kind." To complete the processes already underway, and to preserve future options in the event that market conditions return to previous levels, Irving Oil will continue with the environmental permitting processes related to the proposed second refinery.

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