There are 14 gasoline-producing refineries in Canada 17 refineries in total : 6 in western Canada, 4 in Ontario, 2 in Quebec, and 2 in the Atlantic Provinces. Refineries also produce a number of other refined petroleum products RPPs including diesel and jet fuel. Gasoline and other RPPs are transported from refineries to storage terminals near cities and towns. Gasoline markets are highly localized, and production in each region tends to stay local.
A web of pipelines, railways, shipping routes, and highways is used to distribute gasoline from refineries to terminals between Vancouver Island and Thunder Bay.
Similar webs of infrastructure distribute gasoline from refineries in Ontario to terminals between Sarnia and Ottawa; from refineries in Quebec to terminals between Ottawa and the Atlantic coast; and from refineries in New Brunswick and Newfoundland to terminals around the Atlantic Provinces.
Terminals serve as receipt and distribution points for domestic and imported gasoline, and decide wholesale pricing for local markets. Due to the relatively small volumes demanded by individual and dispersed facilities, transportation of gasoline from terminals is done almost exclusively by truck. After gasoline is purchased at local gas stations and bulk storage plants, it powers personal and freight transport vehicles, and other industrial machinery.
In , Canadians consumed 46 billion litres of gasoline. The first step in meeting this demand is the extraction of crude oil from domestic and international production areas. Oil is transported to a refinery where it is produced into a number of chemically distinct products, including gasoline. From refineries, gasoline is transported to terminals near population centres. There, it is stored and blended with brand-specific performance and efficiency-enhancing additives, as well as ethanol according to government regulations.
From terminals, gasoline is transported by truck to thousands of gas stations across the country. Figure 1: Gasoline Supply Chain Overview. This infographic illustrates the key parts of the gasoline supply chain. Imported and domestic oil are received at the refinery, from which refined petroleum products including gasoline are transferred to primary refinery storage.
Gasoline is then transported to bulk terminals for storage and blended with ethanol and other additives, as well as imported gasoline. Tanker trucks deliver to gas stations.
In many cases, a single company will control multiple aspects of its supply chain, managing oil production and refining operations, as well as owning, operating, or contracting with distribution terminals and retail stations. This is called vertical integration. Some refiners such as Irving Oil, Federated Co-op and Valero do not have crude oil production, but operate distribution terminals and retail stations.
All gasoline comes from crude oil. Logistical and economic factors determine where refineries source their crude oil, and the complexity of each refinery dictates which types of oil it can process. Refineries in western Canada process exclusively domestic oil due to their proximity to inexpensive WCSB production.
These refineries process more oil sands synthetic crude and bitumen than refineries elsewhere in Canada. Shaded areas of this map indicate major WCSB and offshore oil sources.
Lines indicate the routes of several pipelines which supply Canadian refineries. These refineries process much more conventional light and medium crude than in western Canada, and less oil sands synthetic crude and bitumen. Along Line 9 from Ontario to Quebec, transportation from the WCSB becomes more expensive, and imports of crude oil by marine vessel are more attractive for refiners.
Despite having slightly less refining capacity than Ontario, Quebec imported around three times more oil than Ontario in These imports, mostly from the U. Oil pipeline infrastructure currently extends as far as Quebec, leaving the Atlantic Provinces largely without cost-effective access to domestic western Canadian crude Footnote 1.
The nightmare scenario is that Canada embarks on a wildly expensive refinery-building spree, only to find that it has no ports or pipelines to sell it abroad. Supplies would glut, prices would plummet and whatever refining profits Canada once had would vanish.
Any new Canadian refinery would also be poised to celebrate its opening day just as North American oil demand is set to taper off. According to a analysis by BP, U. And a note to B. Your go-to source for all the best Black Friday deals: tech, toys, fashion, mattresses, beauty, wellness, travel and more. The holiday, which is a big deal elsewhere, is becoming a thing here, too. If you're in the market for a new option this cold-weather season, we've rounded up four fashionable finds that will be sure to up your cool factor, while keeping out the cold.
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Manage Print Subscription. Main Menu Search nationalpost. This advertisement has not loaded yet, but your article continues below. The province will accept submissions for refinery proposals until Feb. New oil export pipeline projects -- including TransCanada Corp. Even Enbridge Inc. And, as with crude oil, pipeline links for refined products to markets outside Alberta are limited. The , barrel-a-day Trans Mountain line transported 42, barrels a day of fuels to the Vancouver area for use by drivers in British Columbia.
But imported condensate is already increasingly being displaced as local condensate production rises in the tight oil and gas formations of Western Canada. Are you looking for a stock?
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