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Released March 07, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian oil sands producer Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) chalked up significant progress on some of its highest-valued projects in 2023, and is planning to grow its oil and gas output by 19% to 950,000 barrels of oil equivalent per day over the next five years. Executives told investors that as Canada's pipeline capacity expands, the company's oil sands production is expected to grow 75,000 barrels per day (BBL/d) over the same period to 700,000 BBL/d. Industrial Info is tracking more than US$14 billion worth of active and planned projects from Cenovus, more than US$8 billion of which is attributed to projects in Alberta's oil sands.
Click on the image at right for a graph detailing active and planned projects from Cenovus, by project type.
The predicted growth in Cenovus' oil sands operations will be aided by a projected drop in operating costs at related facilities over the five-year period, from the current US$12.50 per barrel to $11.50. Among the assets expected to see growth are the Narrows Lake development near Christina Lake, in east-central Alberta, which is expected to see additions of 20,000 to 30,000 BBL/d; the Foster Creek development in east-central Alberta, which is expected to see additions of 30,000 BBL/d; and the Sunrise development near Fort McKay, Alberta, which is expected to see additions of 15,000 to 20,000 BBL/d.
"At Christina Lake, we achieved approximately 45% completion of our Narrows Lake tieback pipeline on time and on budget," said Jon McKenzie, the chief executive officer of Cenovus, in a recent quarterly earnings-related conference call. "This will allow us to produce our high-quality, low-SOR [steam to oil ratio] resource back to the Christina Lake processing facility."
At Narrows Lake, Cenovus is proposing a 45,000-BBL/d bitumen-processing plant that would involve drilling multiple horizontal wells and using a solvent-aided-process for bitumen extraction. It also is considering an 85-megawatt (MW), natural gas-fired cogeneration unit that would provide electricity for the additional bitumen production. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can read detailed project reports on the bitumen plant and cogen unit, and learn more from a detailed plant profile.
At Foster Creek, Cenovus is preparing to expand its bitumen-production facilities and construct the new, 30,000-BBL/d Train H bitumen-processing plant, which will bring the site's total production capacity to 230,000 BBL/d. Subscribers can learn more from a detailed project report.
"The Christina Lake-Narrows tieback will add 20,000 to 30,000 barrels a day starting in 2025, but more maturing [is expected] in 2026," McKenzie said in the earnings call. "You'll see the Foster expansion come on in the 2026 timeframe, with full rates in 2027. You should see a continued growth in Sunrise production as we continue to bring on four well packages over the next two, three years. And we believe that we can take that asset beyond the nameplate capacity of 65,000 barrels a day. Today, we're kind of in the 45% to 50% range."
Cenovus also expects to see an additional 45,000 BBL/d from its West White Rose offshore oil drilling project in the Atlantic, offshore Newfoundland and Labrador, over the coming five years, reaching a daily peak of 80,000 BBL/d by 2029. Cenovus believes it can support White Rose's production in the Jeanne d'Arc Basin well into the late 2030s. Subscribers can learn more from a detailed project report.
"We materially progressed construction [in 2023] on the West White Rose project, which is now about 75% complete and reached a major milestone in the second quarter with the completion of the Conoco slipform on the gravity-based structure," McKenzie said. White Rose is expected to incur about US$3.2 billion of investment before its first oil is produced in 2026.
McKenzie also said Cenovus saw "some really good rates at places like Lloydminster, where we had some daily production records in December and early January." He noted the refinery and upgrader in Lloydminster, Saskatchewan is continuing its strong performance in the current quarter as it prepares for a series of major turnarounds in the second quarter on its hydrotreaters, delayed cokers and other units. Subscribers can click here for a list of detailed project reports for the second-quarter Lloydminster turnarounds, and read more in a plant profile.
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 active and planned projects from Cenovus.
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 active and planned projects from Cenovus, by project type.The predicted growth in Cenovus' oil sands operations will be aided by a projected drop in operating costs at related facilities over the five-year period, from the current US$12.50 per barrel to $11.50. Among the assets expected to see growth are the Narrows Lake development near Christina Lake, in east-central Alberta, which is expected to see additions of 20,000 to 30,000 BBL/d; the Foster Creek development in east-central Alberta, which is expected to see additions of 30,000 BBL/d; and the Sunrise development near Fort McKay, Alberta, which is expected to see additions of 15,000 to 20,000 BBL/d.
"At Christina Lake, we achieved approximately 45% completion of our Narrows Lake tieback pipeline on time and on budget," said Jon McKenzie, the chief executive officer of Cenovus, in a recent quarterly earnings-related conference call. "This will allow us to produce our high-quality, low-SOR [steam to oil ratio] resource back to the Christina Lake processing facility."
At Narrows Lake, Cenovus is proposing a 45,000-BBL/d bitumen-processing plant that would involve drilling multiple horizontal wells and using a solvent-aided-process for bitumen extraction. It also is considering an 85-megawatt (MW), natural gas-fired cogeneration unit that would provide electricity for the additional bitumen production. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can read detailed project reports on the bitumen plant and cogen unit, and learn more from a detailed plant profile.
At Foster Creek, Cenovus is preparing to expand its bitumen-production facilities and construct the new, 30,000-BBL/d Train H bitumen-processing plant, which will bring the site's total production capacity to 230,000 BBL/d. Subscribers can learn more from a detailed project report.
"The Christina Lake-Narrows tieback will add 20,000 to 30,000 barrels a day starting in 2025, but more maturing [is expected] in 2026," McKenzie said in the earnings call. "You'll see the Foster expansion come on in the 2026 timeframe, with full rates in 2027. You should see a continued growth in Sunrise production as we continue to bring on four well packages over the next two, three years. And we believe that we can take that asset beyond the nameplate capacity of 65,000 barrels a day. Today, we're kind of in the 45% to 50% range."
Cenovus also expects to see an additional 45,000 BBL/d from its West White Rose offshore oil drilling project in the Atlantic, offshore Newfoundland and Labrador, over the coming five years, reaching a daily peak of 80,000 BBL/d by 2029. Cenovus believes it can support White Rose's production in the Jeanne d'Arc Basin well into the late 2030s. Subscribers can learn more from a detailed project report.
"We materially progressed construction [in 2023] on the West White Rose project, which is now about 75% complete and reached a major milestone in the second quarter with the completion of the Conoco slipform on the gravity-based structure," McKenzie said. White Rose is expected to incur about US$3.2 billion of investment before its first oil is produced in 2026.
McKenzie also said Cenovus saw "some really good rates at places like Lloydminster, where we had some daily production records in December and early January." He noted the refinery and upgrader in Lloydminster, Saskatchewan is continuing its strong performance in the current quarter as it prepares for a series of major turnarounds in the second quarter on its hydrotreaters, delayed cokers and other units. Subscribers can click here for a list of detailed project reports for the second-quarter Lloydminster turnarounds, and read more in a plant profile.
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 active and planned projects from Cenovus.
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).
