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Released February 28, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The government of Alberta is hoping to attract billions of dollars in investments by committing up to C$1 billion (US$780 million) to help develop bitumen partial-upgrading facilities. Partial upgrading reduces the thickness of oil sands bitumen so that it can flow through pipelines more easily, without having to be blended with diluent, promoters of the plan said this week.
Industrial Info is tracking bitumen upgrader projects in Alberta worth US$5.7 billion.
Alberta Premier Rachel Notley said in a prepared statement that Alberta has a "greater variety of natural resources than anywhere in the world, but right now we're not getting full value for them. As we fight for new pipelines and a better price for our oil, we must also create the right conditions for investment and jobs in oil and gas processing and manufacturing."
The government will support up to C$1 billion for partial upgrading over eight years beginning in 2019-2020, including loan guarantees and grants, according to Alberta's Industrial Heartland Association, which promotes industrial development in the Canadian province. Advocates of the plan said it would leverage construction of two to five partial upgrading facilities, representing up to C$5 billion (US$3.9 billion) in private investment, 4,000 jobs during construction and 200 full-time jobs during operation.
More partial upgrading in the province would increase the volume of bitumen that can be shipped through pipelines, increasing the ability of the oil sands industry to compete more effectively by reducing costs, increasing pipeline capacity and enabling more refineries to process Alberta bitumen, according to the plan's advocates. Most U.S. refineries currently do not use bitumen products, and instead consume light oil.
The upgrader program isn't Alberta's first foray into offering incentives for development of its fossil fuel resources. The province last year awarded royalty credits to three projects as part of its petrochemical diversification program. For more information, see December 19, 2017, article - Inter Pipeline Board Approves Construction of Canada PDH/Polypropylene Complex and May 19, 2017, article - Alberta Gains Traction with Petrochemicals Incentives.
Four current Alberta upgrader capital projects being tracked by Industrial Info range in total investment value from US$100 million to US$2.6 billion. The proposed second and third phases of the Redwater bitumen upgrader expansion at North West Redwater Partnership's refinery in Sturgeon County are each valued at US$1.6 billion. The expansions are now in study and evaluation stages. If they move forward, they would expand capacity from 50,000 barrels per day (BBL/d) to 150,000 BBL/d. For more information, see Industrial Info's project reports for Phase II and Phase III.
Meanwhile, Field Upgrading Limited (Calgary, Alberta), with Vista Projects Limited (Calgary), continues front-end engineering design (FEED) work on the grassroot, US$100 million Fort Saskatchewan demonstration bitumen upgrader plant project. Construction of the 2,500-BBL/d facility is expected to kick off later this year, with completion in 2020. For more information, see Industrial Info's project report. Field Upgrading Limited Company also continues with preliminary design of a US$400 million Fort Saskatchewan commercial bitumen upgrader, which would process 10,000 BBL/d. For more information, see Industrial Information's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking bitumen upgrader projects in Alberta worth US$5.7 billion.
Alberta Premier Rachel Notley said in a prepared statement that Alberta has a "greater variety of natural resources than anywhere in the world, but right now we're not getting full value for them. As we fight for new pipelines and a better price for our oil, we must also create the right conditions for investment and jobs in oil and gas processing and manufacturing."
The government will support up to C$1 billion for partial upgrading over eight years beginning in 2019-2020, including loan guarantees and grants, according to Alberta's Industrial Heartland Association, which promotes industrial development in the Canadian province. Advocates of the plan said it would leverage construction of two to five partial upgrading facilities, representing up to C$5 billion (US$3.9 billion) in private investment, 4,000 jobs during construction and 200 full-time jobs during operation.
More partial upgrading in the province would increase the volume of bitumen that can be shipped through pipelines, increasing the ability of the oil sands industry to compete more effectively by reducing costs, increasing pipeline capacity and enabling more refineries to process Alberta bitumen, according to the plan's advocates. Most U.S. refineries currently do not use bitumen products, and instead consume light oil.
The upgrader program isn't Alberta's first foray into offering incentives for development of its fossil fuel resources. The province last year awarded royalty credits to three projects as part of its petrochemical diversification program. For more information, see December 19, 2017, article - Inter Pipeline Board Approves Construction of Canada PDH/Polypropylene Complex and May 19, 2017, article - Alberta Gains Traction with Petrochemicals Incentives.
Four current Alberta upgrader capital projects being tracked by Industrial Info range in total investment value from US$100 million to US$2.6 billion. The proposed second and third phases of the Redwater bitumen upgrader expansion at North West Redwater Partnership's refinery in Sturgeon County are each valued at US$1.6 billion. The expansions are now in study and evaluation stages. If they move forward, they would expand capacity from 50,000 barrels per day (BBL/d) to 150,000 BBL/d. For more information, see Industrial Info's project reports for Phase II and Phase III.
Meanwhile, Field Upgrading Limited (Calgary, Alberta), with Vista Projects Limited (Calgary), continues front-end engineering design (FEED) work on the grassroot, US$100 million Fort Saskatchewan demonstration bitumen upgrader plant project. Construction of the 2,500-BBL/d facility is expected to kick off later this year, with completion in 2020. For more information, see Industrial Info's project report. Field Upgrading Limited Company also continues with preliminary design of a US$400 million Fort Saskatchewan commercial bitumen upgrader, which would process 10,000 BBL/d. For more information, see Industrial Information's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
