Come By Chance refinery to sell products on mainland

Jan. 4, 2001
Petro-Canada and North Atlantic Refining Ltd. have reached a deal allowing the latter to sell petroleum products from its Come-By-Chance, Newf., refinery, into mainland Canada. Petro-Canada had placed a 25-year restrictive covenant on the sales when it sold the plant in 1986. Capacity is now 105,000 b/d.


Petro-Canada and North Atlantic Refining Ltd. have reached a deal allowing the latter to sell petroleum products from its Come-By-Chance, Newf., refinery, into mainland Canada.

Petro-Canada had placed a 25-year restrictive covenant on the sales when it sold the plant in 1986. Capacity is now 105,000 b/d.

Gunther Baumgartner, North Atlantic president, said "Since we took ownership of the refinery in 1994, we have marketed only a small quantity of our products into mainland Canada because the terms of Petro-Canada�s covenant made it uneconomical. Though we are still restricted by the limited availability of Canadian flagged vessels to transport our products to mainland Canada, this new agreement brings us one step closer to expanding our market.�

He said as Canadian demand for low-sulfur fuels increases, the refinery could supply more top quality fuels to the market.

Baumgartner said, �We have been meeting the 2002 low-sulfur requirements for gasoline since 1995. Because the bulk of our products is marketed into the US, where environmental regulations on gasoline and other fuels are much more stringent, we have to make some of the cleanest products on the market.�