Peace River Oil Invests $1.2 Billion in Bluesky Upgrader

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Researched by Industrial Info Resources (Sugar Land, Texas). Peace River Oil, Incorporated (McLennan, Alberta) is planning to invest a total of $1.2 Billion to construct a 100,000-barrel per day upgrader to process bitumen to produce products such as diesel, gasoline and naphtha gas. Alberta has three distinct oil reserves, which are Athabasca Oil Sands, Cold Lake, and Peace River Arch. The location will be in the south central quadrant of the Peace River Arch. The Peace River Arch reserve is the third largest reserve in Alberta and has an estimated 130 million barrels of crude oil. The regulatory application should be submitted by the fall of 2006. Once submitted, the company will choose an engineering firm in September 2006 to perform front-end design. In early 2007, Peace River Oil will choose an engineering and construction firm to perform detailed engineering and construction services for the upgrading facility.

Peace River Oil, Incorporated, a privately-owned company, was established in 2005. The company plans to construct the upgrader on the old anhydrous ammonia plant site that was shut down in 1998 utilizing a unique upgrading technology in four phases of 25,000 barrels per day. The first phase is scheduled to commence construction in the spring of 2008, with completion in early 2010. The following phases are anticipated to start-up early in 2013 for phase two, phase three will start-up early in 2016, and the last phase will start-up by early 2019, depending on market demand. Peace River plans to market synthetic crude oil all over the world, including U.S., Canada and Asia.

Industrial Info is currently tracking 78 active oil sand upgrader projects in Western Canada that are under construction and are currently planned with a total capital expenditure of an estimated $55 billion to start-up through 2016. The companies included besides North West Upgrading are BA Energy; Canadian Natural Resources, Limited; MEG Energy Corporation; North American Oil Sands Corporation; Opti Canada, Incorporated; Peace River Oil, Incorporated; Petro-Canada, Incorporated; Shell Canada, Limited; Suncor Energy, Incorporated; Syncrude Canada, Limited; Synenco Energy, Incorporated and Total S A. For details on these projects contact Industrial Info’s Member Center at 1-800-762-3361.

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