“If you look over the last 30 years, refineries have been shutting down, they haven’t opened up,” Lever said, adding the Sturgeon Refinery will also be the first built under the public-private partnership model.

The company’s annual report states that it has “engaged an investment banking firm to advise us on the potential options for shareholders and to make recommendations to the board,” according to Lever who read the report. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. North West has previously said the refinery will produce only low-sulphur diesel fuel, not gasoline, so the spread between bitumen and diesel prices is expected to be wide enough for all parties to earn money through the project. Refining our Alberta Bitumen into higher value finished products. We ask you to keep your comments relevant and respectful. NWR’s major shareholders are Calgary’s NorthWest Capital, Longbow Capital and Toronto-based Northleaf Capital. North West Redwater Partnership Oil & Energy Gibbons, AB 14,241 followers Canada's newest refinery, processing Alberta's bitumen into cleaner, high value diesel and other products The project has also attracted controversy for its high price tag and use of public royalty barrels.

Canada’s largest oil and gas producer Canadian Natural Resources Ltd. owns the other half of the project, putting the total value of the venture at $1 billion. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. Visit our Community Guidelines for more information and details on how to adjust your email settings. CALGARY – The NWR Sturgeon Refinery Project may be nearing completion but the company that owns half the project already appears to be looking for an early exit. Unauthorized distribution, transmission or republication strictly prohibited.

North West Refining is a 50 per cent owner in the North West Redwater Partnership. Former Alberta finance minister Ted Morton published a study in April 2015 that called it an “economic boondoggle with high risks for Alberta taxpayers.”. NWR’s stake in the under-construction refinery is valued at $500 million, according to AltaCorp. Canadian Natural declined a request for comment on whether it would consider purchasing NWR’s half of the Sturgeon Refinery. Though the North West Redwater Partnership is private, Lever has a $5 price target on the venture’s 187.2 million shares, but notes “for the right buyer, the price could be higher.” The company’s earnings for 2018, when the Sturgeon Refinery begins operations, would total $37 million and rise to $215 million by 2020, according to AltaCorp estimates. The Partnership is building the Sturgeon Refinery, the first greenfield refinery to be built in Canada since 1984. The first phase of the Sturgeon Refinery is targeted to come into operation late in 2017. We encountered an issue signing you up. Lever expects a corporation interested in the after-tax cash flows and significant tax pools or a pension fund would be likely bidders for the stake. North West Redwater Sturgeon Refinery investors seek an early exit: report. Governance. Please try again. The Alberta government and Canadian Natural backstopped an $860 million subordinated debt loan to help finance the project and the province has agreed to supply the refinery with 37,500 barrels of bitumen per day, which it collects as royalty in kind from producers. Morton said soaring project costs and liabilities for the government, which will pay $26 billion in processing payments over 30 years, would make it difficult for the province to break even on the project. In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. A February 2018 report by the Office of the Auditor General of Alberta entitled "APMC Management of Agreement to Process Bitumen at the Sturgeon Refinery", said that the original agreement between the Alberta government and North West Redwater Partnership (NWRP) resulted in the province taking on "many of the risks as if it were building the refinery as a 75 per cent tollpayer in this arrangement". We apologize, but this video has failed to load. Original permitting requirements for site devel opment gmorgan@nationalpost.com Twitter.com/geoffreymorgan. NWR did not respond to a request for comment. The company’s earnings for 2018, when the Sturgeon Refinery begins operations, would total $37 million and rise to $215 million by 2020, according to AltaCorp estimates. “I think it gets sold,” Lever said in an interview, adding the business and its tolling is uniquely structured like a midstream or pipeline operation rather than a downstream refinery. This advertisement has not loaded yet, but your article continues below. A welcome email is on its way. Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. The remainder of the project is funded through $6.35 billion in bonds and $1.77 billion in bank facilities. World's only refinery designed from the ground up to incorporate gasification and a carbon capture and storage solution. In June, 2018, as per the processing agreement with North West Redwater Partnership, APMC started paying debt tolls (total of $209.6 million for the year-ended December 31st). The NWR Sturgeon Refinery Project may be nearing completion but the company that owns half the project already appears to be looking for an early exit. If you don't see it please check your junk folder.

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The oil slump that's hammering Alberta's economy has become an unlikely source of optimism for some, Refining Alberta’s job gusher: Refineries shouldn’t be subsidized on employment grounds, tap here to see other videos from our team. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Read more about cookies here. The sulphur recovery unit at North West Redwater Partnership's Sturgeon Refinery is seen west of Fort Saskatchewan, Alberta on Thursday, November 24, 2016. North West Redwater Partnership (NWR) is a joint venture comprising two Calgary-based companies: NWU LP (Alberta), owned by North West Refining Inc. (Alberta) and CNR (Redwater) Limited, a wholly-owned subsidiary of Canadian Natural Resources Limited. Company profile page for North West Redwater Partnership including stock price, company news, press releases, executives, board members, and contact information 50% owner of the NWR Sturgeon Refinery. Though the North West Redwater Partnership is private, Lever has a $5 price target on the venture’s 187.2 million shares, but notes “for the right buyer, the price could be higher.”. These costs were expensed and resulted in APMC reporting a loss of $163.2 million for the year compared to net income and comprehensive income of $36.8 million for 2017. There was an error, please provide a valid email address. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Calgary-based North West Refining, which owns 50 per cent of the Sturgeon Refinery near Edmonton, has hired investment bankers and is looking for “liquidity alternatives,” according to AltaCorp Capital analyst Dirk Lever, citing the privately-owned company’s annual report which has not been made public. The next issue of Top Stories Newsletter will soon be in your inbox. The AltaCorp report also shows the capital cost of the 50,000-barrel-per-day Sturgeon Refinery have now climbed to $9.3 billion, from a previous estimate of $8.5 billion in 2014. Additional phases, which would add 100,000 bpd of refining capacity, have been proposed but not commissioned for construction. Canadian Natural Upgrading Limited, a wholly owned subsidiary of Canadian Natural Resources Limited, also owns 50 per cent of the Partnership. The North West Redwater Partnership (NWR), Sturgeon Refinery began construction in fall of 2007 following receipt of the appropriate regulatory approvals. © 2020 Financial Post, a division of Postmedia Network Inc. All rights reserved. We are committed to the environment and Alberta's Energy Future.

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