The Honourable Andrew Furey, Premier of Newfoundland and Labrador, today announced that the Provincial Government has entered into a funding agreement with the North Atlantic Refining Limited Partnership (NARL LP) to keep the refinery in warm idle mode while the owner continues to search for a buyer or investor.
This agreement will help protect the asset for future restart, help mitigate restart costs and increase employment levels to 200 full-time equivalents on an interim basis – with potential for more with future restart.
The $16.6 million funding agreement between the Provincial Government and NARL LP will specifically support 75 per cent of eligible labour costs of refinery employees and 50 per cent of eligible non-labour costs in Newfoundland and Labrador associated with the refinery warm idle and restart preparation related activities while the refinery remains offline. The support is in the form of a non-repayable contribution over a seven-month period ending on June 30, 2021 or until the refinery is restarted or resold.
As a result of the agreement, NARL LP will increase employment levels at the refinery to 200 full time equivalent positions as soon as possible but no later than January 31, 2021. NARL LP and its owners will work with the United Steel Workers Local 9316 union under the collective agreement. This staffing level will further support the refinery for future operations. The company will continue its efforts to sustain a reliable fuel supply in the province.
Quotes
“We will continue to work with all stakeholders to ensure a long-term future for the refinery, which remains an important asset for the province and its people. While this has been a difficult, uncertain time for the workers at the refinery, today is good news for them and their families.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“This agreement will ensure the refinery remains in warm idle mode in suitable condition to support a future sale or restart. Part of this agreement includes a commitment by NARL LP and its owners that it will continue its ongoing buyer/investor search for the refinery.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
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