The oilsands boom in northern Alberta has expanded with announcements of new projects worth more than $4.1 billion (Canadian), further pushing expectations for oilsands' contribution to Canada's oil production.
Syncrude Canada Ltd. will spend an additional $3 billion on expansion of its crude oil upgrader near Fort McMurray, Alta.
Gulf Canada Resources Ltd., Calgary, will spend $1.1 billion in five stages to 2006 to develop its Surmont leases, 36 miles southeast of Fort McMurray.
Meanwhile, AEC Pipelines Ltd. announced a $220 million expansion of its Alberta Oil Sands Pipe Line to accommodate the Syncrude expansion. The capacity will increase to 300,000 b/d from a current 238,000 b/d. AEC said eventually up to 950,000 b/d could be shipped from the Fort McMurray region to Edmonton as projects come on stream.
Syncrude project
The Syncrude upgrader expansion would increase production by 60% from a currently approved level of 110 million bbl/year to 175 million bbl/ year by 2007.The bitumen supply will come from leases already owned by the 10-company Syncrude consortium. The new expansion increases Syncrude's investment in new projects to about $6 billion. The consortium will file early in 1998 for regulatory approval.
The upgrader expansion at the Mildred Lake mine will include more than $600 million in new technology to improve environmental performance and energy efficiency as well as increase product yield and quality.
Subject to regulatory approvals, Syncrude plans to begin upgrader construction in 1999, with completion in 2002. The upgrader project is in addition to expansion at several of the group's mining operations.
Syncrude projects production increases from 208,000 b/d in 1996 to 260,000 b/d in 2001, 340,000 b/d in 2003, and 480,000 b/d in 2007. It says current operating costs will be $11-12/ bbl in 2000-02 and could drop to $9-10/ bbl during 2002-07.
Gulf project
Gulf plans to make formal application with regulators in fall 1998.Its project calls for initial production in 2000, 20,000 b/d in 2002, and 100,000 b/d by 2006.
The company began a pilot project at Surmont last fall.
The Gulf project will use horizontal drilling rather than mining for oil recovery. It said plans are now being made for how the oil will be refined and shipped to market.
In addition to the Syncrude and Gulf projects, oilsands and heavy oil projects and expansions have been announced recently by Suncor Inc., Shell Canada Ltd., Mobil Oil Canada Ltd., Amoco Canada Ltd., and Imperial Oil Ltd.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
