refinery

Irving Oil is investing $235 million dollars to upgrade and revamp its Saint John refinery.

The oil giant announced the upgrades on Monday in a press release and said the project, named Operation Osprey, will involve key infrastructure replacement, equipment upgrades, and a major revamp of its Residual Fluid Catalytic Cracking Unit (RFCCU).

The RFCCU is a core unit that converts heavy crude into fuels such as gasoline and diesel, using a specialized catalyst to break down complex hydrocarbons.

The upgrades are expected to begin in early September, with a planned two-and-a-half-month turnaround.

Irving Oil President and CEO Jeff Matthews said in the release that the investment in the refinery is essential to maintain safe and reliable operations, and to strengthen long-term energy security for the regions they serve.

“This project demonstrates our continued commitment to our business, our people and our customers,” added Matthews.

The project will also employ over 2,000 skilled workers from more than 55 contracting companies, primarily from communities across New Brunswick and the broader Atlantic region.

According to Irving, Operation Osprey marks one of the largest turnaround investments taking place at its Saint John refinery in the company’s history.

Irving said the influx of contract workers, representing 19 different trades including labourers, scaffolders, pipefitters, boilermakers, instrumentation techs, welders and bricklayers, is expected to generate more than $14 million in economic revenue in New Brunswick.

This includes spending on short-term accommodation, entertainment and recreation services, retail and other sectors.

Irving also estimates that the total workforce hours on the project represent the equivalent of more than 440 annualized jobs.

These upgrades come after two previous modernization projects announced and completed last year.

In those projects, the oil giant invested $100 million to update the refinery’s Fluid Catalytic Cracking unit, which produces products such as gasoline and diesel, as well as $40 million to upgrade refinery equipment and complete a comprehensive inspection of piping and key units.