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Released June 11, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oil and gas developers in Canada's oil sands region are rushing to take advantage of the Trans Mountain Pipeline's newly expanded capacity, which offers them access to better prices and newer markets from Canada's western coast. The long-anticipated infrastructure milestone is giving developers a reason to add bitumen production capacity to their portfolios, especially in northern Alberta. Industrial Info is tracking more than US$6.8 billion worth of production projects in Canada's oil sands that are set to kick off in the third quarter, more than half of which is attributed to plant expansions.
Click on the image at right for a graph detailing the top parent companies for production projects in Canada's oil sands that are slated to begin from July through September.
Athabasca Oil Corporation (Calgary, Alberta) is among the sector's heavy hitters preparing to expand some of its existing assets in the oil sands, including the Hangingstone production field and processing plant near Fort McMurray, Alberta. The company plans to drill multiple dual-horizontal well pairs and build a second central processing facility, raising bitumen production from 12,000 to 52,000 barrels per day (BBL/d).
"The company is preparing to spud two [roughly] 1,400-meter well pairs [at Hangingstone] in third-quarter 2024," the company said in a recently quarterly earnings-related press release. "Well design, with extended reach laterals, is expected to drive project capital efficiencies of [roughly] $15,000 per barrel per day and will leverage off available infrastructure capacity. These sustaining well pairs will support base production in 2025 and beyond."
About 30 miles to the south, Athabasca is making US$105 million worth of additions to its Leismer production field and processing plant, including a new well pad and four dual-horizontal well pairs. Both projects could wrap up as early as first-quarter 2025. The company remains on track to reach about 28,000 BBL/d mid‐year at Leismer, according to the press release. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Hangingstone and Leismer expansions.
Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary) also is expanding one of its major oil sands facilities: the Kirby North production field and processing plant near Conklin, Alberta, which will raise production from 40,000 to 100,000 BBL/d. Like Athabasca's Hangingstone project, the Kirby North addition will use steam-assisted gravity drainage (SAGD) technology to produce bitumen; development of a separate, commercial-scale solvent SAGD pad at Kirby North is about 90% complete and is expected to begin injection next month, according to CNRL. Subscribers can learn more from a detailed project report.
CNRL is upbeat about its expansion projects in the oil sands, despite last month's swath of wildfires. The company says it should be able to move 94,000 BBL/d on the newly expanded Trans Mountain Pipeline. For more information, see May 14, 2024, article - Canadian Natural Resources Plots Major Oil Production Growth.
Cenovus Energy Incorporated (NYSE:CVE) (Calgary) plans to take advantage of Trans Mountain's expansion with a new, 45,000-BBL/d bitumen-processing plant at its Narrows Lake development near Christina Lake, Alberta, which would be the first of a three-phase development. It also is seeking permits to add a 30,000-BBL/d processing plant at its Foster Creek plant near La Corey, Alberta, which would bring the site's production to 230,000 BBL/d. Subscribers can read detailed reports on the Narrows Lake and Foster Creek projects.
"With this critical piece of infrastructure now complete, we anticipate light-heavy differentials will remain narrow for years, while excess egress capacity exists," said Jon McKenzie, the chief executive officer of Cenovus, in a recent earnings-related conference call. Drew Zieglgansberger, the executive vice president of Cenovus' Natural Gas & Technical Services division, said the company is expecting the Trans Mountain expansion "to be a bit bumpy as things get up to good stable state," but "the teams are taking that into account."
Subscribers to Industrial Info's GMI Project and Plant databases 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 production projects in Canada's oil sands that are set to kick off in the third quarter.
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 the top parent companies for production projects in Canada's oil sands that are slated to begin from July through September.Athabasca Oil Corporation (Calgary, Alberta) is among the sector's heavy hitters preparing to expand some of its existing assets in the oil sands, including the Hangingstone production field and processing plant near Fort McMurray, Alberta. The company plans to drill multiple dual-horizontal well pairs and build a second central processing facility, raising bitumen production from 12,000 to 52,000 barrels per day (BBL/d).
"The company is preparing to spud two [roughly] 1,400-meter well pairs [at Hangingstone] in third-quarter 2024," the company said in a recently quarterly earnings-related press release. "Well design, with extended reach laterals, is expected to drive project capital efficiencies of [roughly] $15,000 per barrel per day and will leverage off available infrastructure capacity. These sustaining well pairs will support base production in 2025 and beyond."
About 30 miles to the south, Athabasca is making US$105 million worth of additions to its Leismer production field and processing plant, including a new well pad and four dual-horizontal well pairs. Both projects could wrap up as early as first-quarter 2025. The company remains on track to reach about 28,000 BBL/d mid‐year at Leismer, according to the press release. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Hangingstone and Leismer expansions.
Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary) also is expanding one of its major oil sands facilities: the Kirby North production field and processing plant near Conklin, Alberta, which will raise production from 40,000 to 100,000 BBL/d. Like Athabasca's Hangingstone project, the Kirby North addition will use steam-assisted gravity drainage (SAGD) technology to produce bitumen; development of a separate, commercial-scale solvent SAGD pad at Kirby North is about 90% complete and is expected to begin injection next month, according to CNRL. Subscribers can learn more from a detailed project report.
CNRL is upbeat about its expansion projects in the oil sands, despite last month's swath of wildfires. The company says it should be able to move 94,000 BBL/d on the newly expanded Trans Mountain Pipeline. For more information, see May 14, 2024, article - Canadian Natural Resources Plots Major Oil Production Growth.
Cenovus Energy Incorporated (NYSE:CVE) (Calgary) plans to take advantage of Trans Mountain's expansion with a new, 45,000-BBL/d bitumen-processing plant at its Narrows Lake development near Christina Lake, Alberta, which would be the first of a three-phase development. It also is seeking permits to add a 30,000-BBL/d processing plant at its Foster Creek plant near La Corey, Alberta, which would bring the site's production to 230,000 BBL/d. Subscribers can read detailed reports on the Narrows Lake and Foster Creek projects.
"With this critical piece of infrastructure now complete, we anticipate light-heavy differentials will remain narrow for years, while excess egress capacity exists," said Jon McKenzie, the chief executive officer of Cenovus, in a recent earnings-related conference call. Drew Zieglgansberger, the executive vice president of Cenovus' Natural Gas & Technical Services division, said the company is expecting the Trans Mountain expansion "to be a bit bumpy as things get up to good stable state," but "the teams are taking that into account."
Subscribers to Industrial Info's GMI Project and Plant databases 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 production projects in Canada's oil sands that are set to kick off in the third quarter.
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).
