EnCana Fast Tracks Bitumen Expansion Project in Alberta

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). EnCana Oil & Gas, a subsidiary of EnCana Corporation (NYSE:ECA) (Calgary, Alberta) has placed the Phase I expansion of its Christina Lake bitumen production facility, located in the Fort McMurray, Alberta region on the fast track. The Christina Lake facility produces bitumen from oil sands using steam assisted gravity drainage (SAGD) technology. The $110 million project will debottleneck the existing facility and will double its current 10,000 barrel per day production capacity to 20,000 barrels per day when completed.

EnCana plans to construct an additional 225 million Btu per hour boiler and install additional heat exchange, vessel and separation capacity to increase throughput. EnCana has retained the services of Bantrel Incorporated (Calgary, Alberta) for the project engineering aspects of the expansion and hopes to receive the financial go ahead from the head office in the first quarter of 2005.

EnCana hopes to begin construction on the debottleneck project in the late second quarter of 2005, with a completion and in-service date targeted for late 2006. In addition to the debottleneck of Phase I, EnCana also has plans to construct phases II & III at Christina Lake. The Phase III expansion could possibly include an 18-megawatt cogeneration plant to supply internal power to the facility, which could, in the end, produce over 100,000 barrels of bitumen by 2012.

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