Strathcona Resources Ltd. has presented a new plan to establish an oil terminal on the northern coast of British Columbia with a capacity of 250,000 barrels per day. This plan requires an exemption from the federal government's ban on oil tanker transportation.
Details of the Oil Terminal Plan
Adam Watrous, Chairman of Strathcona Resources, has announced that the company intends to propose the establishment of a terminal for oil exports via rail to Prince Rupert to Prime Minister Mark Carney next week. This new terminal must establish the necessary infrastructure before it can be launched.
Oil exports from the northern coast of British Columbia are controversial due to significant opposition from Indigenous communities, environmental groups, and David Eby, the Premier of British Columbia. Additionally, former Prime Minister Justin Trudeau imposed a ban on this activity in 2019.
Goals and Economic Impacts
Watrous pointed out that this plan could accelerate Carney's goal of increasing oil exports to customers other than the United States, which accounts for nearly 90 percent of Canada's oil exports. He added, "This plan is transformative for the country because we estimate that we can ship 250,000 barrels of oil per day in less than two years."
According to Watrous, Strathcona currently sends up to 80,000 barrels per day of its own and other companies' oil to the U.S. Gulf Coast via rail terminals acquired in recent years in Hemming, Saskatchewan, and Hardisty, Alberta.
The Prince Rupert terminal also has many of the necessary infrastructures for oil exports, as this port receives propane by rail and exports from an existing terminal. Watrous added that the new terminal will be able to accommodate the largest oil tankers in the world, which carry over one million barrels of oil. He stated that opposition from Indigenous communities may be resolved through negotiations and partnerships.
Watrous concluded by stating, "There is a lot of work to be done, we need to engage with communities and move forward in this regard. The economics of this plan can be very attractive."
