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Articles & Local History > 1972 -Tampico Native Builds $223 Million Refinery

TAMPICO AREA NEWS, by Helen Hunter, Ph. 438-6541

NEW YORK - John M. Shaheen, native of Tampico is president of Shaheen Natural Resources Inc. which is planning a $223 million petroleum refinery in Nova Scotia, its second in Canada.

Announced in Halfiax by Nova Scotia Premier Gerald A. Regan, the refinery will be located at the Strait of Canso deep water harbor and scheduled for completion in late 1974 or early 1975. It will process 200,000 barrels of crude oil a day, making it the largest in Canada, the Premier said.

Under an agreement between the province of Nova Scotia and John M. Shaheen, president  of the oil refiner based in New York, Shaheen Natural Resources will construct and operate the refinery and provide equity financing of $40 million. The remaining $183 million will be raised by issuance of first mortgage bonds.

The British government will guarantee $148 million of the bonds, with the government of Nova Scotia guaranteeing the remainder, Premier Regan said.

Newfoundland Refining Co., a subsidiary of Shaheen Natural Resources, has under construction a barrel-a-day refinery at Come-By-Chance, Newfoundland. Earlier this year, Canada's federal government threatened to halt construction unless the company assured Ottawa it was abiding by Canadian laws.

Reached in Nova Scotia, Mr. Shaheen said the Newfoundland controversy "it's all settled." He added: "We did what the Federal government wanted, and the refinery there is a 80 percent completed. 

Both the Newfoundland plant and the proposed Nova Scotia refinery will use mostly Persian Gulf crude oil. Mr. Shaheen said. Petroleum products from the refineries will be sent to markets on the U. S. East Coast and the U. S. Great Lakes area and to West Germany, he said.

A new subsidiary, Nova Scotia Refining Co., has been formed to operate the planned Nova Scotia facility, Mr. Shaheen said. With the installation, Shaheen Natural Resources will become Canada's third largest refiner, he added.

Shaheen described the Strait of Canso as "a natural for the proposed refinery, because it is the best available deepwater harbor in North America." He said it is capable of handling supertankers of up to 550,000 tons, largest size planned to date.

[nerwspaper clipping. Hand-written date, no name of newspaper. Sterling Gazette16 Nov 1972;16;8 , ]

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