The primary idea floated previously by industry observers including Frank McKenna, the Toronto-Dominion Bank deputy chairman and former New Brunswick premier, is building an upgrader in Saint John near Irving Oil's existing refinery. The unit would process heavy oil-sands bitumen into light, synthetic crude, given the higher demand lighter grades from refinery customers across the Atlantic.
Irving Oil, controlled by Canadian billionaire Arthur Irving, would operate and own half of a marine export terminal already planned for the port city as part of the Energy East pipeline project. Energy East, estimated by TransCanada to cost C$15.7 billion ($12 billion), would transport as much as 1.1 million barrels a day. The pipeline's forecast cost has risen with changes to the design amid opposition and delays in the regulatory review.