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In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. The first phase of the Sturgeon Refinery is targeted to come into operation late in 2017. 50% owner of the NWR Sturgeon Refinery. Canada’s largest oil and gas producer Canadian Natural Resources Ltd. owns the other half of the project, putting the total value of the venture at $1 billion. NWR’s major shareholders are Calgary’s NorthWest Capital, Longbow Capital and Toronto-based Northleaf Capital. North West Refining is a 50 per cent owner in the North West Redwater Partnership.
CALGARY – The NWR Sturgeon Refinery Project may be nearing completion but the company that owns half the project already appears to be looking for an early exit. World's only refinery designed from the ground up to incorporate gasification and a carbon capture and storage solution.
“If you look over the last 30 years, refineries have been shutting down, they haven’t opened up,” Lever said, adding the Sturgeon Refinery will also be the first built under the public-private partnership model. The AltaCorp report also shows the capital cost of the 50,000-barrel-per-day Sturgeon Refinery have now climbed to $9.3 billion, from a previous estimate of $8.5 billion in 2014. These costs were expensed and resulted in APMC reporting a loss of $163.2 million for the year compared to net income and comprehensive income of $36.8 million for 2017. Company profile page for North West Redwater Partnership including stock price, company news, press releases, executives, board members, and contact information The sulphur recovery unit at North West Redwater Partnership's Sturgeon Refinery is seen west of Fort Saskatchewan, Alberta on Thursday, November 24, 2016. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic.
“I think it gets sold,” Lever said in an interview, adding the business and its tolling is uniquely structured like a midstream or pipeline operation rather than a downstream refinery.
Original permitting requirements for site devel opment Morton said soaring project costs and liabilities for the government, which will pay $26 billion in processing payments over 30 years, would make it difficult for the province to break even on the project. If you don't see it please check your junk folder. We apologize, but this video has failed to load. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. This advertisement has not loaded yet, but your article continues below. We ask you to keep your comments relevant and respectful. A welcome email is on its way. The company’s annual report states that it has “engaged an investment banking firm to advise us on the potential options for shareholders and to make recommendations to the board,” according to Lever who read the report. NWR’s stake in the under-construction refinery is valued at $500 million, according to AltaCorp. Visit our Community Guidelines for more information and details on how to adjust your email settings. North West has previously said the refinery will produce only low-sulphur diesel fuel, not gasoline, so the spread between bitumen and diesel prices is expected to be wide enough for all parties to earn money through the project.
The company’s earnings for 2018, when the Sturgeon Refinery begins operations, would total $37 million and rise to $215 million by 2020, according to AltaCorp estimates. Unauthorized distribution, transmission or republication strictly prohibited. We encountered an issue signing you up. In June, 2018, as per the processing agreement with North West Redwater Partnership, APMC started paying debt tolls (total of $209.6 million for the year-ended December 31st). The project has also attracted controversy for its high price tag and use of public royalty barrels. We are committed to the environment and Alberta's Energy Future. © 2020 Financial Post, a division of Postmedia Network Inc. All rights reserved. Former Alberta finance minister Ted Morton published a study in April 2015 that called it an “economic boondoggle with high risks for Alberta taxpayers.”. Comments may take up to an hour for moderation before appearing on the site. The Alberta government and Canadian Natural backstopped an $860 million subordinated debt loan to help finance the project and the province has agreed to supply the refinery with 37,500 barrels of bitumen per day, which it collects as royalty in kind from producers.
Canadian Natural declined a request for comment on whether it would consider purchasing NWR’s half of the Sturgeon Refinery. The remainder of the project is funded through $6.35 billion in bonds and $1.77 billion in bank facilities.
There was an error, please provide a valid email address. The NWR Sturgeon Refinery Project may be nearing completion but the company that owns half the project already appears to be looking for an early exit. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. North West Redwater Partnership Oil & Energy Gibbons, AB 14,241 followers Canada's newest refinery, processing Alberta's bitumen into cleaner, high value diesel and other products Read more about cookies here. Please try again. North West Redwater Sturgeon Refinery investors seek an early exit: report. Though the North West Redwater Partnership is private, Lever has a $5 price target on the venture’s 187.2 million shares, but notes “for the right buyer, the price could be higher.” The company’s earnings for 2018, when the Sturgeon Refinery begins operations, would total $37 million and rise to $215 million by 2020, according to AltaCorp estimates. The North West Redwater Partnership (NWR), Sturgeon Refinery began construction in fall of 2007 following receipt of the appropriate regulatory approvals. The Partnership is building the Sturgeon Refinery, the first greenfield refinery to be built in Canada since 1984. A February 2018 report by the Office of the Auditor General of Alberta entitled "APMC Management of Agreement to Process Bitumen at the Sturgeon Refinery", said that the original agreement between the Alberta government and North West Redwater Partnership (NWRP) resulted in the province taking on "many of the risks as if it were building the refinery as a 75 per cent tollpayer in this arrangement". Lever expects a corporation interested in the after-tax cash flows and significant tax pools or a pension fund would be likely bidders for the stake.