By OGJ editors
HOUSTON, Mar. 15 -- Suncor Energy Inc., Calgary, applied to Alberta regulators Mar. 14 for authorization to construct and operate a third oil sands upgrader that would double production capacity at its Fort McMurray, Alta., oil sands facility to more than half a million b/d of light oil.
The upgrader, 0.5 km southwest of Suncor's existing upgrader facilities, would include cokers, hydrotreaters, utilities support, and a 50-km hot bitumen pipeline to connect the upgrader with Suncor's in situ operations.
Included in the application is a planned petroleum coke gasifier that would reduce the company's reliance on natural gas by processing about 20% of the proposed upgrader's petroleum coke into synthetic gas.
A preliminary estimate of construction costs is $5.9 billion (Can.). The gasifier would add $600 million to the project cost.
Upgrader construction could begin in 2007 following approvals and a nod from the board in late 2006 or early 2007 when engineering is completed and final costs are known.
The upgrader would be brought on line in phases. Production capacity will be expanded to 260,000 b/d from 250,000 by the end of 2005 with the expansion of bitumen supply and upgrading capacity. It would expand to 350,000 b/d in 2008 and to 550,000 b/d in stages during 2010-12.
Later this year and in 2006 Suncor plans to submit additional applications outlining plans to provide bitumen feed to the proposed upgrader. Those additional costs could exceed $4 billion. Suncor also foresees the need for additional pipeline capacity from Fort McMurray to Edmonton and is investigating options for delivery of these increased volumes.
