By Tyler Kula, from www.theobserver.ca The Observer
The case for upgrading oil sands bitumen in Sarnia just got a bump from Canada’s cities.
The Federation of Canadian Municipalities — at its annual general meeting in Vancouver, B.C., Saturday — voted 80% in favour of urging the federal government to commit to upgrading more oil sands bitumen in Canada.
Sarnia-Lambton was trumpeted as an ideal site for a new oil sands upgrading plant at a national bitumen conference in Sarnia last month.
Conference organizers said processing more of Alberta’s oil into fuels and chemicals in Canada will generate more domestic jobs and wealth, currently exported elsewhere.
It’s estimated $125 billion could be generated for the Canadian economy by 2025 with more domestic upgrading.
“This is a good day, this is a good start,” said Lambton County Warden Todd Case from the federation meeting Saturday.
Alberta’s Industrial Heartland Association brought forward the motion and it was seconded by Lambton County at the meeting.
The two groups represent Canada’s major hydrocarbon processing and petrochemical centres — vital contributors to the country’s economy, officials said.
The resolution means potential business opportunities across the country, Case said, noting next steps are up to the federal government.
“We want to see that support from the feds,” he said. “Coming from FCM, it should be something they look favourably at.”
How oil sands upgrading in Canada will be expanded exactly still needs to be worked out, he said.
“There will be some discussion about maybe involving First Nations peoples,” he said. “That’s something that is very important that wasn’t in the resolution that was brought forward by our friends in Alberta.’
But a major obstacle in the way of Sarnia-Lambton’s industrial expansion is the high price of electricity in Ontario.
Energy Minister Bob Chiarelli said recently he expects it will be three or four years before lower provincial rates take hold — which would make Sarnia-Lambton more attractive for industrial development.
Nova Chemicals is currently looking at Chemical Valley and the U.S. Gulf Coast — where energy is less expensive — for a $1-billion polyethylene plant it is planning to build. Initially it was just eyeing Chemical Valley.
Still, Case said he’s excited about the potential of the federation’s resolution.
“At the end of the day this benefits all of Canada, from the west to Ontario to the far east; there’s opportunity for everyone in this type of situation,” he said. “It’s a good day for Lambton County, it’s a good day for Canada and we’ll see what the federal government does with it from now on in.”