Tank farm proposal won't affect refinery

By Dan Hilborn
Published Aug. 26, 2006


There are no plans to increase either the size or scope of the Chevron refinery in North Burnaby in response to Kinder Morgan Canada's recent announcement that it wants to enlarge its tank farm on Burnaby Mountain.

"No, that (tank farm expansion) project has nothing to do with our refinery," Doug Heinze, manager of the Chevron refinery, told the Burnaby NOW. "The pipeline expansion that's been discussed is related to crude oil. ... As you know, we are a relatively small refinery in the big picture.

"Our consumption of crude here is a relatively small piece of the story."

Heinze said the proposed tank farm expansion will probably have a greater impact on Chevron's crude oil shipping business, most of which is conducted through the port of Kitimat.

In terms of the bigger picture, Heinze said British Columbia's economy stands to benefit from the increased interest in Alberta's oil sands, and Kinder Morgan is just one of several pipeline operators now trying to move ahead with proposals to help bring that new oil to market.

"The big story is that Alberta is constrained on crude because production is growing faster than the capacity out of Alberta," he said.

Heinze noted the oil sands have the potential to grow from their current production of half a million barrels per day to a potential of five million barrels per day within the next two decades.

His comments were made just four days after Kinder Morgan Canada presented Burnaby city council with its formal proposal to expand the 53-year-old tank farm.

If KMC goes ahead with the plan, the Burnaby Mountain facility will add at least one new tank capable of holding 35,000 square metres (220,000 barrels) by the year 2009, and possibly five other new tanks in the ensuing years. The tank farm currently houses 13 storage tanks with a total carrying capacity of 270,000 sq.m. (1.7 million barrels).

One barrel is equivalent to 42 US gallons, or 159 litres.