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Released November 13, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Strong refining margins and higher sales volumes from its oil sands operations gave a much-needed jolt to Suncor Energy Incorporated (NYSE:SU) (Calgary, Alberta), which has been battling weak crude prices for most of 2023. The results come amid a wave of belt-tightening measures--including more than 1,500 job cuts--that executives say will save billions in cost. Industrial Info is tracking more than $21 billion worth of active and planned projects from Suncor, about 66% of which is attributed to life-extension or plant-expansion investments.
Click on the image at right for a graph detailing Suncor's active and planned projects, by type.
Rich Kruger, the chief executive officer of Suncor, acknowledged the company's full-year 2023 oil production likely will come in at the lower end of guidance, at about 740,000 barrels per day (BBL/d). He attributed this to the delayed restart of the Terra Nova Floating Production Storage and Offloading (FPSO) facility, offshore Newfoundland, which has been out of service since 2019. Nonetheless, Kruger expressed optimism in a quarterly earnings-related conference call that the project soon would be producing oil.
"The Terra Nova FPSO completed its life extension work in the quarter, and has now returned to station, where it has commissioning and startup activities well underway." Kruger said. "We expect it to begin production later in the fourth quarter, ramping up for the remainder of the year and into 2024." Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more in a detailed plant profile.
Last month, Suncor announced it would purchase TotalEnergies EP Canada Limited from TotalEnergies SE (NYSE:TTE) (Paris, France). The deal adds 61,000 BBL/d of net bitumen production capacity and 675 million barrels of proved and probable reserves to Suncor's existing oil sands portfolio through TotalEnergies' stake in the Fort Hills oil sands mining project near Fort McMurray, Alberta. Suncor now has 100% working interest in Fort Hills, which produces up to 194,000 BBL/d.
Suncor aims to increase production at Fort Hills to 225,000 BBL/d of bitumen through an expansion of the oil sands mine and processing plant, for which it is now seeking permits. The company aims to begin construction on the expansion in mid-2025, although numerous factors could delay or alter any investment. Subscribers to Industrial Info's GMI Oil & Gas Project Database can learn more through a detailed project report.
"We're on track to close the [TotalEnergies] transaction later this month," Kruger said last week in the conference call. "It addresses long-term bitumen supply uncertainty associated with our upgraders [and] fills our upgraders for the long-term, but also enables additional value creation [and] value creation through regional synergies, with mobile equipment deployment, value creation through directing higher yield PFT [paraffinic froth treatment bitumen] from Fort Hills to our upgraders [and] a number of incentives."
For the past three years, Suncor has been performing operational improvements at its Millennium mining and extraction facilities in the Fort McMurray area. It is part of a broader plan to add a fleet of 150 autonomous heavy-hauler trucks at three major sites, including 85 units at the Millennium/Steepbank site. The remaining units already have been successfully deployed at Suncor's North Steepbank and Fort Hills sites. Subscribers can learn more from a detailed project report.
On the refining side, Suncor is considering two proposed efficiency-improvement projects: a 240-megawatt (MW) cogeneration unit addition at its Edmonton Refinery in Sherwood Park, Alberta, and an emissions-reduction program at its refinery in Sarnia, Ontario. The Edmonton project would replace equipment dating back more than 50 years, and the Sarnia project would reduce emissions from a 17,000-BBL/d catalytic cracking unit to 25 parts per million. Subscribers to Industrial Info's GMI Petroleum Refining Project Database can learn more through detailed reports on the Edmonton and Sarnia projects.
"While we saw weakening gasoline cracks in the back half of the quarter, it was a good quarter for refining margins, and particularly for distillate cracks," said Kris Smith, the chief financial officer of Suncor, in the conference call.
Suncor reported a net income of US$1.12 billion for the third quarter, compared with a net loss of US$441.23 million in the third quarter of 2022. The company's oil sands bitumen production totaled 787,000 BBL/d, a 3% increase from the same period last year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Suncor.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Suncor's active and planned projects, by type.Rich Kruger, the chief executive officer of Suncor, acknowledged the company's full-year 2023 oil production likely will come in at the lower end of guidance, at about 740,000 barrels per day (BBL/d). He attributed this to the delayed restart of the Terra Nova Floating Production Storage and Offloading (FPSO) facility, offshore Newfoundland, which has been out of service since 2019. Nonetheless, Kruger expressed optimism in a quarterly earnings-related conference call that the project soon would be producing oil.
"The Terra Nova FPSO completed its life extension work in the quarter, and has now returned to station, where it has commissioning and startup activities well underway." Kruger said. "We expect it to begin production later in the fourth quarter, ramping up for the remainder of the year and into 2024." Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more in a detailed plant profile.
Last month, Suncor announced it would purchase TotalEnergies EP Canada Limited from TotalEnergies SE (NYSE:TTE) (Paris, France). The deal adds 61,000 BBL/d of net bitumen production capacity and 675 million barrels of proved and probable reserves to Suncor's existing oil sands portfolio through TotalEnergies' stake in the Fort Hills oil sands mining project near Fort McMurray, Alberta. Suncor now has 100% working interest in Fort Hills, which produces up to 194,000 BBL/d.
Suncor aims to increase production at Fort Hills to 225,000 BBL/d of bitumen through an expansion of the oil sands mine and processing plant, for which it is now seeking permits. The company aims to begin construction on the expansion in mid-2025, although numerous factors could delay or alter any investment. Subscribers to Industrial Info's GMI Oil & Gas Project Database can learn more through a detailed project report.
"We're on track to close the [TotalEnergies] transaction later this month," Kruger said last week in the conference call. "It addresses long-term bitumen supply uncertainty associated with our upgraders [and] fills our upgraders for the long-term, but also enables additional value creation [and] value creation through regional synergies, with mobile equipment deployment, value creation through directing higher yield PFT [paraffinic froth treatment bitumen] from Fort Hills to our upgraders [and] a number of incentives."
For the past three years, Suncor has been performing operational improvements at its Millennium mining and extraction facilities in the Fort McMurray area. It is part of a broader plan to add a fleet of 150 autonomous heavy-hauler trucks at three major sites, including 85 units at the Millennium/Steepbank site. The remaining units already have been successfully deployed at Suncor's North Steepbank and Fort Hills sites. Subscribers can learn more from a detailed project report.
On the refining side, Suncor is considering two proposed efficiency-improvement projects: a 240-megawatt (MW) cogeneration unit addition at its Edmonton Refinery in Sherwood Park, Alberta, and an emissions-reduction program at its refinery in Sarnia, Ontario. The Edmonton project would replace equipment dating back more than 50 years, and the Sarnia project would reduce emissions from a 17,000-BBL/d catalytic cracking unit to 25 parts per million. Subscribers to Industrial Info's GMI Petroleum Refining Project Database can learn more through detailed reports on the Edmonton and Sarnia projects.
"While we saw weakening gasoline cracks in the back half of the quarter, it was a good quarter for refining margins, and particularly for distillate cracks," said Kris Smith, the chief financial officer of Suncor, in the conference call.
Suncor reported a net income of US$1.12 billion for the third quarter, compared with a net loss of US$441.23 million in the third quarter of 2022. The company's oil sands bitumen production totaled 787,000 BBL/d, a 3% increase from the same period last year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Suncor.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
