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Article: Canada : Irving, BP scrap plans for Canadian refinery.
- Article from:
- TendersInfo
- Article date:
- July 25, 2009
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Byline: prashant03
Irving Oil Ltd and BP Plc (BP.L) said on Friday they will not proceed with plans to build a C$8 billion ($7.4 billion) oil refinery in New Brunswick, citing the recession and its impact on fuel demand.
The companies were studying the feasibility of a second, 300,000 barrel a day plant in Saint John, possibly to be built in two phases, to boost gasoline supplies, mainly in the U.S. Northeast.
But profit margins have dwindled and spare processing capacity has grown across North America with the economic downturn.
"It became clear, particularly over the past year, that the market conditions for refining have changed ...