08/17/2012 03:36 EDT | Updated 10/17/2012 05:12 EDT

B.C. publisher proposes crude refinery near Kitimat

A prominent B.C. businessman is proposing to build an oil refinery near Kitimat to refine crude oil shipped from the Enbridge Northern Gateway pipeline.

David Black, owner of Black Press Group Ltd., said his other company, Kitimat Clean Ltd., is submitting an environmental assessment application for approval to build the plant.

It's a project worth $13 billion, and Black said the refinery will create 3,000 full-time jobs and 6,000 temporary jobs during the construction phase.

In a written statement published online, Black said the refinery is being designed specifically for processing Alberta oilsands heavy crude oil, and should have the capacity to process the entire output of the proposed Northern Gateway pipeline.

Black said the plant would process up to 550,000 barrels per day of dilbit — condensate diluent and Alberta oilsands bitumen — and would return the separated diluent to the Edmonton area through a proposed secondary pipeline.

He said the plant would produce 240,000 barrels of diesel, 100,000 barrels of gasoline and 50,000 of kerosene, or jet fuel, per day.

The refinery is being planned on a 3,000 hectare parcel of Crown land near DuBose, B.C., that is zoned for industrial use, he said.

The DuBose site is 25 kilometres north of Kitimat, 25 kilometres south of Terrace, and would be approximately 40 kilometres near a pipeline from a planned Enbridge marine terminal on the Douglas Channel.

Black said construction could begin as early as 2014.