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North West applies for upgrader



By Upstream staff 

Privately held North West Upgrading has filed an application to build a C$4.8 billion ($4.2 billion) heavy oil processing plant in a region near Edmonton, Alberta.

The Calgary-based company said it planned to build the 231,000 barrel a day plant, which would upgrade heavy crude and tar-like bitumen into refinery-ready light oil on a fee-for-service basis.

In the past two months, partners in the Fort Hills oil sands project including Petro-Canada, UTS Energy and Teck Cominco - as well as Synenco Energy - have announced plans to build upgraders in Sturgeon County.

According to Reuters, the region offers access to a large workforce close by, which will help avoid cost overruns due to stretched labor supplies that have plagued similar projects in the oil sands boom region near Fort McMurray, Alberta.

North West plans to build its plant in three phases, with the first scheduled to start operations in early 2010. Construction would start in mid-2007.


Tuesday, 31 January, 2006, 18:22 GMT  | last updated: Tuesday, 31 January, 2006, 19:18 GMT

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