Shell Canada Could Invest Billions to Expand Peace River Oil Sands Processing Facility

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Researched by Industrial Info Resources (Sugar Land, Texas). Shell Canada Limited (Calgary, Alberta), the Canadian operating arm of Royal Dutch Shell (NYSE:RDS.A), is studying the feasibility of expanding its Peace River oil sands processing and bitumen production facility located near Peace River, Alberta. Once the project scope has been decided the Carman Creek expansion could increase bitumen production from the facility by a further 200,000 barrels per day (BL/d) from its present day production of approximately 12,000 BBL/d.

Presently Shell Canada envisions the construction of up to 4 separate phases of 50,000 BBL/d each. Shell Canada plans on using its Horizontal Cyclic Steam technology for bitumen extraction. To supply power to the facility, the first phase of expansion will include the construction of a cogeneration plant of up to 120 megawatts in size. The waste heat from this cogen will be incorporated into the steam cycle for bitumen production.

The Shell Canada has retained the services of Jacobs Canada Incorporated for engineering services. Jacobs is presently in the conceptual engineering phase of the Carman Creek project and it is expected that Shell Canada will file its permits for governmental review in the first half of 2008.

Construction on the first phase of the Carmen Creek project should begin in late 2009 or early 2010 with a targeted plant start up in 2010. The other three phases of expansion should reach completion and in-service dates approximately every two years beginning in 2014 and ending in 2018.

The Carman Creek project is one of over 120 oil sands related construction projects currently being tracked by industrial info that are scheduled to begin construction from December of 2007 out to the middle of the next decade. The combined capital associated with these projects is $112.684 billion giving each project an average capital value of $931 million. The capital expenditures are spread over the several industrial sectors including production, upgrading & refining, mining, pipelines and storage terminals located in the Canadian province of Alberta.

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