$90 Million Investment to Rebuild Idle Oil Refinery in Alberta

SEATTLE (Oil Monster): Plans to rebuild an idle oil refinery in Alberta has been unfolded. The announcement to this effect was made by Gen III Oil Corp. on Wednesday.

According to the company, it plans to invest approximately $90 million to convert the idle oil refinery in Bowden, Alberta along the highway between Calgary and Edmonton into a motor-oil re-refinery, which will make use of chemical garbage that would otherwise go down the drain.

The company has already made significant progress in the development of the facility. Sources indicate that the company has already signed a 20-year land lease agreement with Calgary-based Parkland Fuel Corp., which owns the refinery. A front-end engineering study has been carried out in partnership with Stantec Inc. Also, the company has invited bids towards construction of the facility.

The easy access to Parkland’s rail-loading facility and oil-storage tanks is expected to bring down construction costs by at least $35 million. Gen III Oil Corp. expects to raise bulk of the funds through equity issuances. The company is also in talks with major US and Canadian banks for arrangement of expected financing.

The construction works on the facility is expected to commence this summer. The commissioning of the facility is scheduled to be held during the first quarter of next year.  The construction phase of the project will provide employment to nearly 450 people. The facility will offer around 25 full-time well paying jobs. The re-refinery will have a production capacity of around 2,800 barrels per day. Upon completion, it would be the first re-refinery in Alberta and third in Canada after the ones in North Vancouver and Kitchener, Ontario.