3 days ago
North Atlantic in talks to acquire second-largest oil refinery in France
A Newfoundland and Labrador-based company that's been on a steady trajectory of growth is poised to make a significant expansion into Europe, as North Atlantic Refining Limited aims to become a global player in the conventional and renewable energy sectors.
North Atlantic, as it's known, made international business headlines on Wednesday with news that it's in talks with oil giant ExxonMobil to purchase the Port-Jerome-Gravenchon oil refinery in northern France.
The facility is the second-largest oil refinery in France at roughly 230,000 barrels of crude per day, and is one the largest integrated chemical complexes in Western Europe.
And there's already a connection with Newfoundland and Labrador because the facility refines crude from the offshore, and North Atlantic routinely purchases fuels from the refinery to supply its gas stations in the province.
"It's a fantastic foothold for us in terms of our plans for expansion into Europe," Ted Lomond, North Atlantic's president and CEO, told CBC News during an interview from Paris.
ExxonMobil has accepted North Atlantic's offer to acquire its 83 per cent stake in Esso Société Anonyme Française SA and 100 per cent of ExxonMobil Chemical France SAS.
The deal comes with a price tag of nearly $700 million Cdn and is expected to close in the fourth quarter of 2025.
Lomond is now in talks with union and government officials in France.
"We need to work with them and make sure that they're comfortable with us as a player," Lomond explained, adding that the company plans to retain the current workforce.
"Our goal is to have a global energy company headquartered in Newfoundland and Labrador."
North Atlantic has created a new division called North Atlantic France to manage the refinery, with Lomond serving as president.
This is not new territory for North Atlantic. The company owned and operated the Come By Chance oil refinery in Placentia Bay, which peaked at 130,000 barrels per day prior to its closure in early 2020. The refinery has since been converted into a renewable fuels facility by its new owners, but is currently idled because of challenging market conditions.
North Atlantic operates a logistics hub at the Port of Come By Chance, where it imports roughly 60 per cent of the gasoline, diesel and jet fuel supply for the province. The company has also expanded its chain of Orange Stores into Nova Scotia and Prince Edward Island, recently established a trucking company and is proposing to establish a multi-billion-dollar wind-to-hydrogen facility in Come By Chance and Sunnyside.
The company currently employs 360 workers.
Lomond said the company will explore the possibility of using renewable energy from Newfoundland to energize the refinery in France, and use the site as a "launching point" to distribute green hydrogen throughout Europe.
A news release from the company said "North Atlantic aims to develop Gravenchon into a green energy hub, leveraging its infrastructure to accelerate the deployment of low-carbon fuels and renewable power."
Lomond said the province will benefit in other ways from the deal. For example, he said North Atlantic currently buys fuels on the spot market, but as the owner of a refinery, he said the company will have a secure supply of fuels for the province.
He added that some "functions" of the facility may also be performed in the province, which could mean additional jobs in Newfoundland and Labrador.
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