abce certificate
Monday, 08 September, 2008, 18:20 GMT | more prices >>

Fort Hills upgrader 'to pump 145,000 bpd'



By Upstream staff 

Petro-Canada said today a planned upgrading refinery for its Fort Hills oil sands project in northern Alberta will produce as much as 145,000 barrels a day of synthetic oil when completed in five years.

The upgrader, which will convert bitumen from its Fort Hills oil sands mine north of Fort McMurray, Alberta, into refinery-ready crude, will process 170,000 barrels a day of the tar-like bitumen into 145,000 barrels of synthetic crude oil, the company said.

Further expansions of the facility near Edmonton could boost output to 320,000 barrels a day by 2015, the company said.

Petro-Canada has been mulling the potential size of its upgrader since acquiring its stake in the Fort Hills project in March 2005. It holds a 55% stake in the project, along with UTS Energy (30%) amd Tec Cominco (15%).

However the company said it had still has not completed a cost estimate for its Fort Hills project. That won't be available until early next year when the final design is complete, the company said.

The news came as Petro-Canada warned that the estimated cost of retooling its existing refinery in Edmonton, Alberta, to process purely oil sands-derived crude has jumped by 25% from an earlier estimate,Reuters reported.

The project is now expected to cost C$2 billion ($1.8 billion), up from C$1.6 billion, partly due to changes in the design, Neil Camarta, Petro-Canada's senior vice-president of oil sands, said at a company-sponsored investor meeting.

Scope changes were deemed necessary when it became clear that it would be difficult to integrate new equipment with units already installed at the 125,000-barrel-a-day refinery, Camarta said.

"Using old units doesn't always go as planned. We are not getting as much synergy as we originally thought," he said.

Camarta said a plan to boost production at the company's MacKay River, Alberta, steam-driven oil sands development by 40,000 barrels a day by 2010 may cost C$800 million to C$1.2 billion.

MacKay River is expected to pump 30,000 barrels a day of bitumen by the end of this year.


Tuesday, 03 October, 2006, 18:38 GMT  | last updated: Tuesday, 03 October, 2006, 23:38 GMT

e-mail this article to a colleague


to email:  from:
comments: