Canadian Refinery Overview - Energy Market Assessment April 2018 - National Energy Board
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National Energy Office national
Board de l’énergie
National Energy Office national
Board de l’énergie
Canadian
Refinery Overview
Energy Market Assessment
April 2018
Canadian Refinery Overview 1
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© Her Majesty the Queen in Right of Canada as represented by the © Sa Majesté la Reine du chef du Canada représentée par l’Office
National Energy Board 2018 national de l’énergie 2018
Canadian Refinery Overview 2018 – Aperçu des raffineries au Canada en 2018 –
Energy Market Assessment Évaluation du marché de l’énergie.
Cat. No.: NE23-193/2018E-PDF Cat. No. : NE23-193/2018F-PDF
ISBN: 978-0-660-25790-7 ISBN : 978-0-660-25791-4
This report is published separately in both official languages and is Ce rapport est publié séparément dans les deux langues
available upon request in multiple formats. officielles. On peut obtenir cette publication sur supports
multiples, sur demande.
About the NEB
The National Energy Board (NEB or Board) is an independent federal regulator. Its purpose is to promote
safety and security, environmental protection, and economic efficiency in the Canadian public interest within
the mandate set by Parliament for the regulation of pipelines, energy development, and trade.
The Board’s main responsibilities include regulating:
• the construction, operation, and abandonment of pipelines that cross international borders or provincial/
territorial boundaries;
• associated pipeline tolls and tariffs;
• the construction and operation of international power lines and designated interprovincial power lines;
• imports of natural gas and exports of crude oil, natural gas, oil, natural gas liquids, refined petroleum
products, and electricity; and
• oil and gas exploration and production activities in specified northern and offshore areas.
About this Report
The Board monitors energy markets and assesses Canadian energy requirements and trends to support
its regulatory responsibilities. This report, Canadian Refinery Overview 2018 – Energy Market Assessment,
is part of a portfolio of publications on energy supply, demand, and infrastructure that the NEB publishes
regularly as part of its ongoing market monitoring.
Contributors to this report include: Colette Craig (project manager), Grant Moss.
Questions or comments? Please e-mail energy-energie@neb-one.gc.ca.
Canadian Refinery Overview i
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
What is a Refinery? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Refinery Profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Canada’s Refineries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Crude Oil Pricing and its Impact on Canadian Refineries . . . . . . . . . . . . . . . . . . . . . 6
Crude Oil Receipts and Refining Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Refining Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Refined Petroleum Product Supply and Demand Balance . . . . . . . . . . . . . . . . . . . . 9
Refineries by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Western Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Central and Atlantic Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Quebec and Atlantic Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Crude Oil Imports to Central and Eastern Canada . . . . . . . . . . . . . . . . . . 15
ii Energy Market Assessment – April 2018Executive Summary
Canada is the world’s seventh largest crude oil producer1 and has the world’s third largest crude oil reserves.
It has a strong refining industry, ranking 11th in the world in capacity. Despite being a top ten producer
of crude oil, and having a strong refining industry, Canada processes only a fraction of its own crude oil
production. Most of the refineries in Canada, built when there were abundant supplies of light crude oil,
were not configured to process growing volumes of heavy crude oil from the oil sands. Canadian refineries
have imported significant volumes of crude oil, mostly light, because not all refineries have had access to
western Canadian crude oil.
Refineries, including those in Canada, are generally located on major waterways, near crude oil production
or near major population centres. Location is important because it determines both where a refinery sources
its crude, and the type of crude oil it processes.
Canada has 14 full refineries and 2 asphalt refineries. Canada’s total refining capacity is 295 thousand cubic
metres per day (103m3/d) or 1.9 million barrels per day (MMb/d) (Figure 3). Quebec and Atlantic Canada
have the most refining capacity at 124 103m3/d (782 thousand barrels per day (Mb/d)), followed by western
Canada at 109 103m3/d (683 Mb/d) and Ontario at 62 103m3/d (390 Mb/d).
Canadian refineries produce refined petroleum products (RPPs) including gasoline, diesel fuel, jet fuel,
heating oil and others. Canada’s RPP production is primarily for domestic consumption, with some exports
mainly from the Atlantic refineries.
Refineries east of the Prairie Provinces process primarily conventional light crude oil. Refineries in western
Canada process more oil sands crude than refineries in eastern Canada. The reversal of Enbridge Line 9,
back to its original eastward flow, has connected western Canadian crude oil supply with Montreal refineries
and allowed more to flow to Ontario. This was an important market development for both crude oil
producers and refiners. It gave producers an additional market for their production and it gave refiners
pipeline access to relatively less expensive western Canadian crude oil.
Although Canadian refineries are processing more Canadian crude than ever before, eastern Canadian
refineries will still import crude oil to meet their refining needs. This will expose them to the international
crude oil market, more so than refineries in western Canada.
1 Behind Russia, Saudi Arabia, United States (U.S.), Iraq, Iran, and China.
Canadian Refinery Overview 1What is a Refinery?
A refinery processes crude oil into RPPs such as gasoline, diesel fuel, jet fuel, and heating oil, as well as liquid
petroleum gases (LPGs) such as propane and butanes. Approximately 80% of the products produced in a
refinery are used to either move people and goods, or keep people warm. The other 20% includes inputs
into the petrochemical industry, as well as kerosene and stove oil, asphalt and lubricating oil and greases, to
name a few.
Crude oil is a mixture of many individual hydrocarbons, each of which have a unique boiling point. This
property is the basis for separating the components in the distillation process, the first and most important
process in the refinery.
In the first step of the refining process, crude oil is heated in a large furnace, where most of the oil boils off
into a gas. The liquids and vapours are then discharged into distillation units which are specifically designed
vertical towers that separate and collect fractions of crude oil components with similar boiling points.
Because heavier hydrocarbons have higher boiling points than the lighter hydrocarbons they tend to fall
to the bottom of the column in liquid form. At the same time, lighter components tend to rise in gaseous
form to the cooler top end of the column. Components that boil somewhere in between are collected and
withdrawn from the distillation tower at intermediate points in the column.
FIGURE 1
Simplified Illustration of a Petroleum Refinery
Distillation End products
tower
gasoline LPG
vapors
LPG
naphtha reformer gasoline
kerosene jet fuel
diesel diesel fuel
distillate
akylation LPG
medium weight unit
gas oil gasoline
cracking
heavy units motor gasoline
gas oil jet fuel
diesel fuel
residuum coker
industrial fuel
asphalt base
Source:
Energy Information Administration
2 Energy Market Assessment – April 2018After distillation, the heavier products can be processed in a variety of ways, all with the objective of
increasing the refinery yield of higher value, lighter products like gasoline and diesel. Cracking breaks down
heavier streams from the distillation process into lighter components, and is the most important conversion
process in a modern refinery. It turns heavier crude oil fractions (which would otherwise have to be sold at
a discount to crude) into blending components for finished products. Other refinery processes, including
alkylation and reforming target improvement in the quality of specific crude oil fractions. Not all refineries
have coking units, but those that do are able to process even the heaviest distillation fraction from crude oil
(commonly called residue), into lighter fractions for subsequent processing and blending.
Refinery Profitability
Refineries maximize profit by maximizing yields of high value products like transportation fuels (gasoline and
diesel) while minimizing shipping costs of their feedstock (crude oil) and products. Maximizing profitability
is also a balancing act: a refinery can reduce the costs of its feedstock by refining heavy crude oil instead of
light crude oil, because light crude oil is more expensive; however, heavy crude oil is more difficult and costly
to refine, as it requires additional equipment like a coker.
Compared to light crude oil, refining heavy crude oil typically yields higher proportions of lower value
products, all else being equal.
A barrel of crude oil equals 42 U.S. gallons2
(159 litres) and produces approximately FIGURE 2
170 litres of RPPs when refined. (Figure 2)
The outputs from refining are greater than Petroleum Products Made From a Barrel of Crude Oil
the inputs, because most of the products
they make have a lower density than the
crude oil they process. This increase in
volume is called processing gain. Different
refineries can also produce different yields Other products: 13.2%
because of the structure and composition
of their processing units. Petroleum Coke: 5.4%
Demand for RPPs, particularly for gasoline, Residual fuel oil: 2.5%
is somewhat seasonal. In the spring, Distillate fuel oil: 28.4%
refiners maximize production of gasoline
to meet increased demand during the Jet fuel: 9.9%
summer driving season. There is also more
asphalt produced in the summer because
of increased road construction. In the
Gasoline: 47%
fall, production of light fuel or heating
oil increases because of higher heating
demand during winter.
What is Light Crude Oil? Generally,
crude oil with low viscosity which flows
Source:
freely at room temperature. There are Energy Information Agency Administration
varying thresholds for the line between
light and medium crude oils. Light crude
oil is also a collective term used to refer What is Heavy Crude Oil? Generally, a crude oil that is
to conventional light crude oil, upgraded very viscous and has a density greater than 900 kg/m³,
heavy crude oil, and pentanes plus. or an API gravity below 25.
2 1 U.S. gallon equals 3.8 litres or .83 imperial gallons.
Canadian Refinery Overview 3Canada’s Refineries
Canada’s total refining capacity is 295 103m3/d (1.9 MMb/d) (Figure 3). Quebec and Atlantic Canada have the
most refining capacity at 124 103m3/d (782 Mb/d), followed by western Canada at 109 103m3/d (686 Mb/d)
and Ontario at 62 103m3/d (390 Mb/d).
Canadian refineries have different characteristics depending on their location. Generally, refineries are
located on major waterways, near major cities or near crude oil production. Being on a major waterway gives
a refinery access to offshore crude oil as well as export market access for its RPPs. Being close to a large
city provides a market for its RPPs and lowers the cost of transportation. Being close to crude oil production
gives a refinery ample local supply at low transportation costs.
Most Canadian refineries are owned by vertically integrated companies, which have crude oil production,
refining and product marketing. The refineries in western Canada have access to western Canadian crude
oil production; therefore, domestic crude oil supplies meet all of their feedstock needs. The refineries in
Ontario used to import crude oil from around the world to supplement their needs. However, the recent
reversal of Enbridge Line 9 provided greater access to western Canadian crude oil and U.S. imports.
Quebec also receives crude oil on the reversed Line 9 and processes western Canadian crude oil, as well as
U.S. imports. Refineries in Atlantic Canada import most of their crude oil and process some domestic east
coast production. Refineries base their crude oil purchasing decisions on access and economics. Currently,
refineries in Atlantic Canada have no pipeline access to western Canadian crude oil and this is why the
eastern Canadian refineries use mainly imported crude oil rather that Canadian production3.
Refineries in western and central Canada receive the majority of crude oil via pipeline, with smaller volumes
transported by rail. In Atlantic Canada, most of the crude oil is delivered by tanker with smaller volumes
transported by rail.
The History of the Enbridge Line 9 and its importance
to the Canadian Refining Industry
As a result of the 1973 Organization for Petroleum Exporting Countries (OPEC) embargo, the
Government of Canada, concerned about the potential vulnerability of central Canadian refineries
which imported crude oil, asked Interprovincial Pipeline (IPL, now Enbridge) to extend its pipeline
system from the Toronto area to Montreal. In 1975, the Government entered into an agreement
with IPL to construct an extension from Sarnia to Montreal. The Line had a capacity of 50 103m3/d
(315 000 b/d).
Between 1976 and 1997, Line 9 supplied refineries in Ontario and Quebec with western Canadian
crude oil via Sarnia after being shipped through the U.S. In 1999, because of increased global
oil supply, Line 9 was reversed allowing overseas crude oil (which was already being imported at
Portland, Maine and transported on the Portland-Montreal Pipeline to Montreal refineries) to be
shipped further westward on Line 9 to reach refineries in Ontario. During that time, Line 9 had a
capacity of 38 160 m3/d (240 000 b/d).
In 2011, with lower North American crude oil prices relative to imported crude oil, the line was
underutilized and Enbridge applied to the Board to re-reverse a section of the pipeline between
Sarnia and North Westover, Ontario. In 2013, the first phase of the Line 9 reversal was completed,
allowing transport of North American crude oil to more refineries in Ontario. In 2012, Enbridge filed
an application with the Board to reverse the remaining section of Line 9, between North Westover
and Montreal and expand the capacity to 47 700 m3/d (300 000 b/d). Since 2015, growing supplies of
western Canadian and U.S. crude oil have been reaching refineries in Quebec.
3 Since 2010, Newfoundland and Labrador has increasingly exported more of its oil to non U.S. markets. Exports to non U.S.
markets such as Europe and the Caribbean made up 8% of the province’s export volumes in 2010 and increased to 21% of
the province’s exports in 2016.
4 Energy Market Assessment – April 2018FIGURE 3
Canadian Refineries and Capacity
Imperial – Strathcona Sturgeon Refinery
Edmonton Redwater
Husky Energy 191 Mb/d (Under Construction)
Prince George
12 Mb/d Shell Scotford
Fort Saskatchewan Silver Range
100 Mb/d Quebec/Atlantic Canada Come by Chance
Suncor 3 3 115 Mb/d
Edmonton 124 10 m /d
Husky Energy
142 Mb/d
Lloydminster 782 Mb/d
29 Mb/d Valero Irving
Parkland Burnaby Refinery
Consumer Co-operative Levis Saint John
Burnaby
Regina 265 Mb/d 300 Mb/d
55 Mb/d Moose Jaw Refinery
Moose Jaw 135 Mb/d
19 Mb/d Suncor
Montréal
Western Canada 137 Mb/d
3 3
109 10 m /d Suncor Imperial
Nanticoke
683 Mb/d Ontario
Sarnia
113 Mb/d
85 Mb/d
3 3
62 10 m /d Imperial Shell
390 Mb/d Sarnia Sarnia
119 Mb/d 73 Mb/d
Map produced by the NEB, April 2018. The map is a graphical representation intended for general informational purposes only
Source:
Canadian Association of Petroleum Producers (CAPP)
Canadian Refinery Overview 5Crude Oil Pricing its Impact on
Canadian Refineries
Canada imports crude oil even though it produces more crude oil than it processes in its refineries. This is
because of the locations of the refineries and the type of crude oil that is produced in Canada. As a result,
some refineries process both domestic and imported crude oil. Canadian refineries that process imported
crude oil are exposed to global crude oil prices which are higher at times than North American prices.
Between 2000 and 2010, West Texas Intermediate (WTI), which is the benchmark price for North American
crude oil, averaged $1.40/bbl higher than the price for Brent, which is the international benchmark price.
(Figure 4)
In 2011 and 2012, rising crude oil production in the U.S. and limited export access for North American
crudes caused the price of WTI to be much lower than Brent. The differential averaged almost US$17/bbl,
and reached as high as US$27/bbl in September 2011.
FIGURE 4
Spot Price of West Texas Intermediate and Europe Brent
160
140
120
100
80
$US/bbl
60
40
20
0
-20
-40
Jan-2000
Jul-2000
Jan-2001
Jul-2001
Jan-2002
Jul-2002
Jan-2003
Jul-2003
Jan-2004
Jul-2004
Jan-2005
Jul-2005
Jan-2006
Jul-2006
Jan-2007
Jul-2007
Jan-2008
Jul-2008
Jan-2009
Jul-2009
Jan-2010
Jul-2010
Jan-2011
Jul-2011
Jan-2012
Jul-2012
Jan-2013
Jul-2013
Jan-2014
Jul-2014
Jan-2015
Jul-2015
Jan-2016
Jul-2016
Jan-2017
Jul-2017
Differential WTI spot price FOB Brent spot price FOB
Source:
Energy Information Administration
Refineries in Ontario, Quebec, and Atlantic Canada which import light crude oil priced at Brent, saw their
crude oil costs rise compared to those refineries in western Canada and the U.S., with access to less
expensive, western Canadian or midcontinent North American crude oil.
6 Energy Market Assessment – April 2018Crude Oil Receipts and
Refining Capacity
A refinery purchases crude oil to consume in its refinery or to store for later use. These are crude oil receipts.
Between 1982 and 2004, refinery receipts of imported crude oil grew, while domestic crude oil receipts
declined. During this time, the refining profit from running offshore crude oil rather than domestic crude
oil was favourable. That meant that many of the refineries in Canada were importing crude oil. In 2005, this
started to change. Imports began to fall and domestic crude oil volumes rose slightly. (Figure 5) In 2010,
this trend became more pronounced because the difference in the cost of North American crude oil and
offshore crude oil was significant. The closure of refineries in central and Atlantic Canada that imported
crude oil, the economic use of rail to transport discounted domestic crude oil and the re-reversal of Line 9
also contributed to this trend.
FIGURE 5
Crude Supply to Canadian Refineries
7 000
6 000
5 000
4 000
103m3/d
3 000
2 000
1 000
0
Jan-1982
Dec-1982
Nov-1983
Oct-1984
Sep-1985
Aug-1986
Jul-1987
Jun-1988
May-1989
Apr-1990
Mar-1991
Feb-1992
Jan-1993
Dec-1993
Nov-1994
Oct-1995
Sep-1996
Aug-1997
Jul-1998
Jun-1999
May-2000
Apr-2001
Mar-2002
Feb-2003
Jan-2004
Dec-2004
Nov-2005
Oct-2006
Sep-2007
Aug-2008
Jul-2009
Jun-2010
May-2011
Apr-2012
Mar-2013
Feb-2014
Jan-2015
Dec-2015
Nov-2016
Total domestic crude Total crude imports Oct-2017
Source:
CANSIM 134-0001
Refining Capacity
Between 2005 and 2013, three refineries closed in central and Atlantic Canada: Imperial Oil Dartmouth
(2013), Shell Montreal (2010), and Petro-Canada Oakville (2005). While the age4 and complexity of those
refineries were factors, changing environmental regulations for gasoline, overall declining demand for RPPs,
and higher crude oil costs for eastern refineries have led to a broader, long-term trend of smaller refineries
closing and consolidating in favour of larger, more complex ones.
4 The Dartmouth Refinery operated for 95 years, the Shell refinery for 76 years and the Oakville Refinery for 63 years.
Canadian Refinery Overview 7Despite a decline in the number of total refineries, the average capacity per refinery in Canada has
increased. This indicates that consolidation has resulted in larger refineries and greater efficiencies.
The average capacity per refinery in 2016, reached 18 103m3/d (114 Mb/d) – an all-time high. (Figure 6)
There had been no new refineries built in Canada in 30 years. However, in late 2017, the Sturgeon Refinery
located northeast of Edmonton began operations.
FIGURE 6
Average Capacity per Refinery vs Number of Refineries
m3/d
20 000 50
18 000 45
16 000 40
14 000 35
12 000 30
10 000 25
8 000 20
6 000 15
4 000 10
2 000 5
0 0
1947
1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
2016
Capacity Per Refinery Number of Refineries
Source:
CAPP
The Sturgeon Refinery
The Sturgeon Refinery, located northeast of Edmonton, is owned
and operated by North West Redwater Partnership. The Partnership
is an alliance between North West Upgrading and Canadian Natural
Upgrading Ltd., a subsidiary of Canadian Natural Resources Ltd. It is
the first Canadian refinery built in 30 years.
Sturgeon is estimated to process 13 103m3/d (79 Mb/d) of diluted
bitumen into ultra-low sulphur diesel fuel and other high-value
products, including diluent.
In its first phase of operation, the Alberta government will provide
75% of the diluted bitumen feedstock and Canadian Natural
Resources will supply the remaining 25%.
Source:
North West Redwater Partnership
The refinery produced its first diesel fuel in December 2017. It is still
under construction and can currently only process synthetic crude oil and
not bitumen.
Sturgeon is using advanced technologies to reduce environmental impacts,
including a carbon capture and storage (CCS) system. The refinery will also tie
into the Alberta Carbon Trunk Line that will transport CO2 to declining oil fields
in central Alberta for the purpose of enhanced oil recovery.
8 Energy Market Assessment – April 2018Refined Petroleum Product Supply
and Demand Balance
Canada is the seventh largest crude oil producer in the world. Despite this, Canadian refineries process
less than 30% of that crude oil. (Figure 7) This is mainly because of the size of Canada’s refining industry
compared to the resource size, the location of its refineries, and the lack of cross-country pipeline
connectivity. Canadian refineries operate mostly to meet domestic needs, with some exports.
Most refineries, including those in Canada, do not operate at 100% capacity. This is mostly due to planned/
unplanned maintenance and outages. In 2017, Canadian refineries operated at 84% of their capacity.5
FIGURE 7
Refined Product Disposition – 20175
m3/d
- 100 000 200 000 300 000 400 000 500 000 600 000 700 000
Refinery Receipts
Crude Oil Production
RPP Refinery Production
RPP Domestic Sales
RPP Exports
RPP Imports
- 500 000 1 000 000 1 500 000 2 000 000 2 500 000 3 000 000 3 500 000 4 000 000
b/d
Domestic Crude Imported Crude Refined Products
Source:
Refined Products: CANSIM 1340004, Crude: CANSIM 1340001, Crude Oil Production: CANSIM 1260003
5 Year-to-Date September 2017.
Canadian Refinery Overview 9FIGURE 8 FIGURE 9
Canadian Crude Oil Receipts by Type6 Canadian Crude Oil Production by Type7
6% 11%
Heavy crude oil Heavy crude oil
Synthetic crude oil 39%
29% Synthetic crude oil
22%
Light and medium
54% crude oil Light and medium
crude oil
Bitumen
Bitumen
11%
28%
Source: Source:
CANSIM 134-0001 CANSIM 126-0001
In 2017, over half of the crude oil processed in Canadian refineries was light conventional crude oil. Slightly
over one-third of refinery receipts was crude oil from the oil sands (either bitumen or synthetic). (Figure 8)
The rest is conventional heavy oil.
In 2016, almost 40% of Canadian production was crude bitumen, followed by synthetic, light and medium,
and heavy crude oil. (Figure 9).
Figure 9 shows that bitumen accounts for almost 40% of Canadian production while making up less than
10% of total crude oil refined in Canada. Canada exports most of its bitumen production to the U.S.
FIGURE 10
Canadian Crude Production vs Refinery Receipts
103m3/d Mb/d
700
4 000
600
3 500
500
3 000
400 2 500
300 2 000
1 500
200
1 000
100
5 00
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Production Receipts
Source:
Production: CANSIM 126-0001 and Receipts: CANSIM 134-0004
Crude oil receipts at Canadian refineries have not grown since 2000; however, Canadian production has
increased. (Figure 10) Canadian refinery production peaked in 2004. Between 2004 and 2015, refinery
production dropped nearly 15%. 67
6 Year-to-Date January to October 2017.
7 Average January and February 2016.
10 Energy Market Assessment – April 2018Refineries by Region
Western Canada
Most refineries in western Canada are owned by vertically integrated companies, which have crude oil
production, refining, and product marketing. The refineries in western Canada have access to western
Canadian crude oil production and domestic crude oil supplies meet all of their feedstock needs. As shown
in Figure 11, refineries in western Canada are well connected to local crude oil production by pipeline
systems. These refineries use western Canadian crude oil because it is close. This is advantageous relative
to other Canadian refineries because their facilities produce products at a lower cost. If and when possible,
integrated companies even process their own crude oil production.
FIGURE 11
Western Canada – Refineries and Major Oil Transportation Routes
ALBERTA REFINERIES
A Edmonton
5 Imperial - 187 Mb/d
Zama Suncor - 147 Mb/d
Shell - 100 Mb/d
Rainbow Lake B Lloydminster
Husky Ashphalt Plant - 29 Mb/d
Husky Upgrader - 82 Mb/d
ALBERTA UPGRADERS
C C Syncrude (Fort McMurray) - 465 Mb/d
24
Suncor (Fort McMurray) - 438 Mb/d
Taylor 13 22 Fort McMurray Shell (Scotford) - 240 Mb/d
CNRL (Horizon) - 135 Mb/d
21 16 Nexen (Long Lake) - 72 Mb/d
SASKATCHEWAN REFINERIES
D Regina
17 23 Co-op Refinery-Upgrader Complex - 135 Mb/d
12 E Moose Jaw
Prince
F 18 Moose Jaw Ashphalt Plant - 19 Mb/d
George
CANADA
A 19 BRITISH COLUMBIA REFINERIES
Edmonton F Prince George
11 Lloydminster Husky - 12 Mb/d
B
Hardisty
G Vancouver
3 20 Saskatoon
Chevron - 55 Mb/d
Red Deer
Kerrobert
14 25
10
Kamloops Calgary Winnipeg
Regina
2 E D
Nanaimo Vancouver Kelowna 15 1
G 20 8 9
4
Victoria 7 6
Anacortes
Clearbrook
Cut Bank
U N I T E D S TAT E S Trenton
Major Oil Transportation Routes in Western Canada
Pipelines (NEB Regulated) Pipelines (Provincially Regulated) Other Features
1 - Enbridge Mainline* 9 - Westspur 11 - Plateau 19 - Husky Municipalities Parks
2 - Keystone 10 - Cochin 12 - Pembina 20 - PMC
3 - Trans Mountain* 13 - Rainbow 21 - Corridor Rail Systems
Water Bodies
4 - Express 14 - Rangeland 22 - Syncrude US CAN Border
5 - Enbridge Norman Wells 15 - Bow River 23 - Athabasca
6 - Milk River 16 - Waupisoo/Woodland 24 - Horizon 0 125 250 500 km
7 - Aurora 17 - Access 25 - Alberta Products*
8 - Wascana 18 - Cold Lake
* Refined petroleum products are shipped on the Alberta Products Pipeline, as well as batched on the Enbridge Mainline and Trans Mountain. Map produced by the NEB, March 2016
Canadian Refinery Overview 11Refineries in Alberta and B.C. process more oil
sands crude, synthetic and bitumen, than other FIGURE 12
refineries in Canada. (Figure 12) B.C. refineries source Input to Refineries by Crude Type –
crude oil from B.C. as well as from Alberta on the Alberta and British Columbia8
Trans Mountain Pipeline.
Western Canada is connected with refined product
pipelines. Within Alberta, RPPs are transported 24%
from Edmonton on the Alberta Products Pipeline Heavy crude oil
to the southern part of the province. Refined Synthetic crude oil
petroleum products are transported to B.C. via 3% Light and medium
the Trans Mountain pipeline and to Saskatchewan, crude oil
Manitoba and northwestern Ontario on the 61% 12%
Bitumen
Enbridge Mainline.
However, Alberta has limited access to RPP imports.
In general, the Prairie Provinces cannot easily meet
their RPP demand in the event of a disruption Source:
because they do not have the capacity to bring in CANSIM 126-0003
large quantities, by pipeline or other means, from
other regions.8
Central and Atlantic Canada
In the past, Atlantic Canada and Quebec were not well connected to domestic crude oil production.
Until recently, all of these Canadian refineries imported crude oil to meet their needs. With the reversal of
Line 9 and more rail capacity, Quebec refineries now process some western Canadian crude oil and are less
exposed to international crude oil market fluctuations.
Refineries in Newfoundland and Labrador and New Brunswick still rely almost entirely on imports, and at
times process offshore eastern Canadian production. When it is economic to do so, the Irving refinery in
New Brunswick rails crude oil from western Canada and the U.S. Because the refineries in Newfoundland
and Labrador and New Brunswick import crude oil, they are more exposed to international crude oil
market fluctuations.
Ontario
Ontario refineries process both western Canadian crude oil and imports. Almost 60% of the crude oil
processed in Ontario is light crude. (Figure 14) Refining costs can be higher in Ontario due to this larger
proportion of higher cost light crude, as well as added transportation costs given the distance between
Sarnia and large producing areas.
Since the reversal of Line 9 back to its eastward flow, more crude oil has been sourced from the U.S.
(Figure 15)
RPPs produced in Ontario are consumed in domestic regional markets. Three pipelines transport RPPs
in Ontario: the Trans Northern Pipeline, the Sarnia Products Pipeline and the Sun Canadian Pipeline.
The Trans Northern Pipeline transports RPPs from Quebec to locations in eastern Ontario and Toronto.
The Sarnia Products Pipeline and the Sun Canadian Pipeline transport RPPs from Sarnia to Toronto.
Ontario can also receive RPPs by rail, truck, and ship from Quebec and the U.S.
8 Due to confidentiality rules, Saskatchewan is not included. Average Year-to-Date July 2017.
12 Energy Market Assessment – April 2018FIGURE 13
Eastern Canada and Ontario - Refineries and Major Oil Transportation Routes
NEWFOUNDLAND & LABRADOR REFINERIES
A Come by Chance
Silber Range (Come by Chance) - 115 Mb/d
NEW BRUNSWICK REFINERIES
B Saint John
Irving - 300 Mb/d
QUÉBEC REFINERIES
C Montréal/Lévis
Suncor - 137 Mb/d
Valero - 265 Mb/d
Come By Chance
ONTARIO REFINERIES
D Sarnia CANADA A
Imperial - 121 Mb/d
Shell - 77 Mb/d
Suncor - 85 Mb/d Jonquière
New
E Nanticoke
Imperial - 112 Mb/d Brunswick
Québec
Sudbury
Lévis Moncton
North Bay
Quebec 4
Montréal
Nova
Lac-Mégantic Saint John
Ottawa Scotia
B Dartmouth
C 2
Ontario
Halifax
Peterborough
3
Toronto Kingston
Portland
D 1 Atlantic Ocean
Sarnia Niagara Falls
E U N I T E D S TAT E S
Windsor
Major Oil Transportation Routes in Eastern
N J Canada and Ontario
Pipelines (NEB Regulated) Pipelines (Provincially Regulated) Other Features
1 - Enbridge Line 9 Pipeline 4 - St. Laurence Pipeline* Municipalities Parks
2 - Portland-Montréal Pipeline * Refined petroleum products are C
CAAN
NAAD
DAA
shipped on the Trans Northern and Rail Systems
3 - Trans-Northern Pipeline* Water
St. Laurence pipelines. US CAN Border Bodies
0 100 200 400 km U
UN N II TT E
EDD
S
S TT A
A TT EESS
Map produced by the NEB, January 2018
The map is a graphical representation intended for general informational purposes only
FIGURE 14
Input to Refineries by Crude Type – Ontario9
23% Heavy crude oil
Synthetic crude oil
5% Light and medium
59% crude oil
13% Crude bitumen
Source:
CANSIM 126-0003
9
9 Year-to-Date October 2017.
Canadian Refinery Overview 13FIGURE 15
Western Canadian and Imported Crude Oil to Ontario Refineries
m3/d
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Domestic Crude Imported Crude
Source:
CANSIM 134-0001
Quebec and FIGURE 16
Atlantic Canada Input to Refineries by Crude Type – Quebec10
Access to tidewater allows refineries in Quebec and
Atlantic Canada to have a more diverse crude oil
Heavy crude oil
supply than those in Ontario and western Canada,
35%
as well as access to markets for their RPP exports. In Synthetic crude oil
2013, the Board approved the reversal and expansion Light and medium
of Line 9B, between North Westover, Ontario and 56% crude oil
Montreal, Quebec, so that crude oil could flow
Crude bitumen
from west to east all the way to Montreal. This gave 7%
refineries in Quebec a pipeline connection to western 2%
Canadian and U.S. crude oil supply and reversed all of
Line 9 to its original direction. Source:
CANSIM 126-0003
Quebec refineries process mostly light and medium
crude oil with smaller volumes of synthetic and
bitumen. (Figure 16)
The Pipeline Saint-Laurent, links the Jean Gaulin Refinery operated by Valero in Lévis near Quebec City
to the terminal in Montreal East, supplying the Greater Montreal area with large volumes of RPPs such as
gasoline, diesel, heating, oil, and jet fuel. In addition, Trans Northern Pipeline transports RPPs from Quebec
to Ontario.10
Refineries located in Atlantic Canada almost exclusively rely on imported crude oil from a number of
different countries supplemented with some east coast production. (Figure 17)
The Irving Refinery in Saint John, New Brunswick is the largest refinery in Canada, and exports considerable
volumes of RPPs to the U.S. The Irving refinery is unique compared to refineries because it is a family-owned
operation with no crude oil production, and a refining and marketing arm.
10 Due to confidentiality rules, only Quebec data is available.
14 Energy Market Assessment – April 2018Crude Oil Imports to Central and Eastern Canada
Eastern Canada imports significant volumes of crude oil to meet its refining needs. Each province,
Newfoundland and Labrador, New Brunswick, Quebec, and Ontario has a diverse crude slate, with imports
in some cases coming from several different countries.
In 2017, Newfoundland and Labrador received almost 60% of its crude oil from the U.S. This is down from
2015, when it received almost all of its imports from the U.S. It also imports crude oil from the United
Kingdom and Angola.
New Brunswick has the most diverse crude slate. In 201711, Saudi Arabia accounts for almost 40% of
New Brunswick’s crude oil imports, followed by Azerbaijan, the United Kingdom, the U.S., and Nigeria.
Quebec receives over 60% of its crude oil imports from the U.S. with lesser volumes from Algeria. U.S.
imports have grown with the reversal of Line 9B.
Ontario receives all of its crude oil imports from the U.S. Most of the U.S. imports come from the states of
Texas, North Dakota, and Indiana.12
FIGURE 17
Imports by Eastern Canadian Provinces YTD 201712
Russian Federation
100%
Iraq
90% Venezuela
Argentina
80%
Angola
70% Brazil
Kazakhstan
60%
Equatorial Guinea
50% Congo
Azerbaijan
40% Colombia
Ivory Coast
30%
Saudi Arabia
20% Algeria
Denmark
10%
United Kingdom
0% Norway
2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017
Nigeria
NL NB QC ON
United States
Source:
Statistics Canada’s Canadian International Merchandise Trade Database
11 Year-To-Date to October 2017.
12 Year-To-Date October 2017.
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