Future fuels: Canada's coast-to-coast network of refineries is emerging from a $3-billion-plus spending binge to take the lead in producing low sulphur gasoline

A series of investments to convert Canada's 22 operating refineries to produce low-sulphur gasoline are discussed. The investment involves more than $3-billion that will transform Canada's portfolio of aging refineries into one of the most efficient in the western world, and in the process reduce sulphur content in Canadian gasoline to 30 ppm. In some cases the refitting will be completed years ahead of the required 2005 deadline. Total refining capacity in Canada is about 2.5 million barrels per day of crude oil, which includes 580,000 barrels per day of capacity that is dedicated to upgrading bitumen into synthetic crude oil. The initiative to update the refineries was led by Irving Oil, which launched a one billion dollar refit of its 250,000 barrels per day Saint John refinery in the year 2000. Irving Oil's efforts were driven by the company's marketing program in the United States where regional fuel quality standards are higher than national standards either in Canada or the United States. Shell Canada and Imperial Oil are also on track to meet the 30 ppm sulphur level ahead of schedule. For example, Shell Canada is cooperating with Suncor Energy Products in the construction of a hydrotreater at Suncor's Sarnia refinery which will be used to reduce sulphur content of diesel from both the Shell and Suncor refineries, while Imperial Oil is investing over $520 million to refit its refineries in Alberta, Ontario and Nova Scotia. Petro-Canada too, has embarked on a $450 million capital program late in 2003 to introduce low sulphur gasoline; this was in addition to the $1.2 billion program to integrate its bitumen production, upgrading and refining operations. Ultramar launched its $300 million desulphurization program in late 2002; the project is now nearing completion. Refit of Ultramar's Jean Gaulin refinery on Quebec's South Shore will also include a 30,000 barrels per day continuous regeneration platformer to provide a second hydrogen source for the hydrotreater and aid in the production of low sulphur diesel fuel, starting in 2006