North West Redwater lets contract for Alberta bitumen refinery

Partners in the North West Redwater Partnership (NWR) have let a services-related contract to Jacobs Engineering Group Inc. for work at NWR’s greenfield bitumen refinery project in Sturgeon County, about 45 km northeast of Edmonton, Alta. (OGJ Online, Jan. 28, 2010).

Under the terms of the contract, Jacobs will provide engineering and procurement services for the refinery’s utilities requirements, which is a fundamental component of Phase 1 of the project, Jacobs said. A contract value was not disclosed.

In late 2013, NWR partners North West Upgrading Inc. and Canadian Natural Upgrading Ltd., a wholly owned subsidiary of Canadian Natural Resources Ltd., reported a decision to postpone construction of the first phase of the Sturgeon bitumen refinery due to rising capital costs (OGJ Online, Dec. 5, 2013).

Once completed, Phase 1 of the $8.5 billion project will be 50,000 b/d and will capture 1.2 million tonnes/year of carbon dioxide to be sold for use in enhanced oil recovery. Two further phases with capacities of 50,000 b/d each also are planned for the refinery.

Following commissioning of all three phases, the Sturgeon refinery will operate at a capacity of 150,000 b/d to produce diesel, diluent, and other bitumen products for both Canadian and global markets.

NWR plans to commission commercial operations for Phase 1 in September 2017 (OGJ Online, Mar. 3, 2014; Dec. 20, 2013).

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