Formation Liquids Logistics Limited, based in Red Deer, Alberta, and a leader in energy logistics, has announced its intention to invest in Pacific Future Energy’s proposal to build the world’s greenest bitumen-to-fuels refinery in British Columbia.
Pacific Future Energy Corporation (PFEC) has submitted its proposal to federal and provincial regulators. This began a review process that could last up to two years.
Construction could begin in 2018 and production in 2021, at a site between Terrace and Kitimat in northwestern BC. The project will cost an estimated $15 billion.
Formation Liquids Logistics (FLLL) has 28 years experience in the product-by-rail industry. It will help feed PFEC’s refinery with Western Canadian “neatbit” by rail. Neatbit is bitumen in a safe and near-solid form. From it, the refinery will produce diesel, gasoline, and jet fuel.
PFEC will open up new market access for Canada’s oil products and protect BC’s coastal waters from large crude-oil tankers, says Robert Delamar, CEO of the Vancouver-based company.
“We are proud that Marvin and Brandt Trimble of FLLL have chosen to invest in our vision to build the world’s greenest refinery,” said Delamar. “They are leaders in their field. FLLL will become the primary operator of our proposed rail facilities, and we couldn’t be happier to work with a firm that shares our values, and holds an unimpeachable record with respect to the safe transport of bitumen on rail.”
Marvin Trimble, president of FLLL, said: “FLLL has worked with most of the major producers in Western Canada and supports PFEC’s vision to open new markets in Asia for products from Canadian bitumen. We have a strong record of providing better-than-pipeline economics to the oil industry in Western Canada, and we are confident that our facilities will be able to deliver to PFEC a steady supply of feedstock in a safe and environmentally optimal fashion.”
As both PFEC and FLLL are private companies, the terms of the financing are not being disclosed at this time.