Released February 13, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian oil producer Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) saw a better end to 2019 than many of its U.S. peers, as Canadian crude prices remained strong and U.S. sales improved. The company benefited from Alberta's decision to ease curtailment rules enacted last year, which bolstered prices. Industrial Info is tracking about $2.9 billion in active Cenovus projects, including a series of upgrades at a pair of refineries co-owned in the U.S.
Click on the image at right for a map of Cenovus' Canadian project sites in central Alberta and eastern British Columbia.
Cenovus expects to spend between C$1.3 billion (US$980 million) and C$1.5 billion (US$1.13 billion) on capital projects in 2020, with more than 70% allocated to maintaining production in Alberta and British Columbia's oil sands. Total production in 2020 is expected to increase roughly 8% from last year to between 472 million and 496 million barrels of oil equivalent per day, with all of the Alberta production that had been curtailed last year set to be back in business.
NOTE: All project values are in U.S. dollars, unless otherwise noted.
In March, Cenovus reached a milestone at its Christina Lake complex near Fort McMurray, Alberta, when the company completed its "Phase G" expansion. Expected to ramp up over the coming six to 12 months, the expansion is expected to increase production capacity to 228,800 barrels per day (BBL/d). Cenovus is now reviewing a proposed, estimated $800 million "Phase H", which would further expand the steam-assisted gravity drainage (SAGD) gathering field and boost production to 288,000 BBL/d. For more information, see Industrial Info's project reports on Phase G and Phase H.
Cenovus is reportedly considering a proposal to tie back Phase H with its third major oil sands project, the estimated $1 billion Narrows Lake SAGD complex, which is to be located north of Christina Lake. The project, as currently envisioned, would involve drilling a series of horizontal wells and building a 45,000-BBL/d bitumen-processing plant, with two additional phases possible in the years following completion.
Narrows Lake, which would not begin construction until third-quarter 2021 at the earliest, would be serviced by a $100 million natural gas-fired cogeneration unit addition that would generate 85 megawatts (MW) for the facility and any future phases. For more information, see Industrial Info's project reports on the production plant and cogeneration unit.
In the U.S., Cenovus co-owns WRB Refining LP (Borger, Texas) in a 50:50 partnership with Phillips 66 (NYSE:PSX) (Houston, Texas). WRB's Wood River Refinery in Roxana, Illinois, processes a mix of low-sulfur, high-sulfur and high-acid crude oil from Canadian and U.S. shale plays, and is set to begin work later this summer on an estimated $100 million upgrade and expansion of a hydrocracker unit, which processes 38,000 BBL/d.
WRB will modify four reactors and the main fractionation column on the hydrocracker, and is set to begin modifying the main fractionation column in a separate $10 million upgrade to a gasoline hydrotreater that processes 55,000 BBL/d. WRB already is adding an estimated $1 million high-sulfur fuel-oil blending tank at Wood River, which is expected to wrap up soon, and is weighing a proposed $25 million in distillation unit improvements. For more information, see Industrial Info's reports on the hydrocracker unit, gasoline hydrotreater, blending tank and distillation unit projects.
At its Borger Refinery in Borger, Texas, which processes primarily medium sour crude oil and natural gas liquids (NGL), WRB is considering a pair of proposals: $50 million in upgrades to heaters on three crude units and a $5 million addition of a cooling tower. The latter project would replace up to three existing towers with a single tower. If approved, neither project would begin construction until 2021 at the earliest. For more information, see Industrial Info's project reports on the heater upgrades and cooling tower proposals.
Cenovus' net earnings for fourth-quarter 2019 were reported to be C$113 million (US$85.2 million), compared with a fourth-quarter 2018 net loss of $1.35 billion (US$1.02 billion). Cash from operating activities for fourth-quarter 2019 stood at C$740 million (US$557.94 million), compared with $485 million (US$365.68 million) in fourth-quarter 2018.
The company's net earnings for full-year 2019 were reported to be C$2.19 billion (US$1.65 billion), compared with a 2018 net loss of $2.92 billion (US$2.2 billion). Cash from operating activities for 2019 stood at C$3.29 billion (US$2.48 billion), compared with $2.15 billion (US$1.62 billion) in 2018.
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/.
Click on the image at right for a map of Cenovus' Canadian project sites in central Alberta and eastern British Columbia.Cenovus expects to spend between C$1.3 billion (US$980 million) and C$1.5 billion (US$1.13 billion) on capital projects in 2020, with more than 70% allocated to maintaining production in Alberta and British Columbia's oil sands. Total production in 2020 is expected to increase roughly 8% from last year to between 472 million and 496 million barrels of oil equivalent per day, with all of the Alberta production that had been curtailed last year set to be back in business.
NOTE: All project values are in U.S. dollars, unless otherwise noted.
In March, Cenovus reached a milestone at its Christina Lake complex near Fort McMurray, Alberta, when the company completed its "Phase G" expansion. Expected to ramp up over the coming six to 12 months, the expansion is expected to increase production capacity to 228,800 barrels per day (BBL/d). Cenovus is now reviewing a proposed, estimated $800 million "Phase H", which would further expand the steam-assisted gravity drainage (SAGD) gathering field and boost production to 288,000 BBL/d. For more information, see Industrial Info's project reports on Phase G and Phase H.
Cenovus is reportedly considering a proposal to tie back Phase H with its third major oil sands project, the estimated $1 billion Narrows Lake SAGD complex, which is to be located north of Christina Lake. The project, as currently envisioned, would involve drilling a series of horizontal wells and building a 45,000-BBL/d bitumen-processing plant, with two additional phases possible in the years following completion.
Narrows Lake, which would not begin construction until third-quarter 2021 at the earliest, would be serviced by a $100 million natural gas-fired cogeneration unit addition that would generate 85 megawatts (MW) for the facility and any future phases. For more information, see Industrial Info's project reports on the production plant and cogeneration unit.
In the U.S., Cenovus co-owns WRB Refining LP (Borger, Texas) in a 50:50 partnership with Phillips 66 (NYSE:PSX) (Houston, Texas). WRB's Wood River Refinery in Roxana, Illinois, processes a mix of low-sulfur, high-sulfur and high-acid crude oil from Canadian and U.S. shale plays, and is set to begin work later this summer on an estimated $100 million upgrade and expansion of a hydrocracker unit, which processes 38,000 BBL/d.
WRB will modify four reactors and the main fractionation column on the hydrocracker, and is set to begin modifying the main fractionation column in a separate $10 million upgrade to a gasoline hydrotreater that processes 55,000 BBL/d. WRB already is adding an estimated $1 million high-sulfur fuel-oil blending tank at Wood River, which is expected to wrap up soon, and is weighing a proposed $25 million in distillation unit improvements. For more information, see Industrial Info's reports on the hydrocracker unit, gasoline hydrotreater, blending tank and distillation unit projects.
At its Borger Refinery in Borger, Texas, which processes primarily medium sour crude oil and natural gas liquids (NGL), WRB is considering a pair of proposals: $50 million in upgrades to heaters on three crude units and a $5 million addition of a cooling tower. The latter project would replace up to three existing towers with a single tower. If approved, neither project would begin construction until 2021 at the earliest. For more information, see Industrial Info's project reports on the heater upgrades and cooling tower proposals.
Cenovus' net earnings for fourth-quarter 2019 were reported to be C$113 million (US$85.2 million), compared with a fourth-quarter 2018 net loss of $1.35 billion (US$1.02 billion). Cash from operating activities for fourth-quarter 2019 stood at C$740 million (US$557.94 million), compared with $485 million (US$365.68 million) in fourth-quarter 2018.
The company's net earnings for full-year 2019 were reported to be C$2.19 billion (US$1.65 billion), compared with a 2018 net loss of $2.92 billion (US$2.2 billion). Cash from operating activities for 2019 stood at C$3.29 billion (US$2.48 billion), compared with $2.15 billion (US$1.62 billion) in 2018.
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/.
