Shell Canada Selects Engineering Firm for Refinery Expansion Feasibility Study in Ontario

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Researched by Industrial Info Resources (Sugar Land, Texas)--Shell Canada Limited, the Canadian operating arm of Royal Dutch Shell (NYSE:RDS.A) (The Hague, The Netherlands) has selected SNC Lavalin (TSX:SNC) (Sarnia, Ontario) to perform a feasibility study for the proposed 150,000- to 250,000-barrel-per-day (BBL/d) heavy oil refinery in Sarnia. The refinery expects to receive approval from the Ministry of the Environment by fall 2008. After approval, the company will select a firm to perform engineering, procurement and construction services for the refinery.

The new plant is expected to produce several light oil products to maximize value from the growing oil sands market. The refinery will contain several new units: a crude and vacuum unit, coker, hydrocracking unit, continuous catalytic reformer and a distillate hydrotreater. In addition, the company's Corunna facility will require several modifications to include a revamp of the 20,000 BBL/d fluid catalytic cracker unit, isomax unit, gasoline hydrotreater and union dow extraction unit. Construction is expected to commence in early 2010 with start-up targeted for 2013.

Shell Canada is a large producer of natural gas, natural gas liquids and bitumen. The company is divided into four business sectors: exploration and production, oil sands, oil products, and a research center. The exploration and production sector handles natural gas and natural gas liquids. The oil sands sector includes the Muskeg River Mine, Scotford Upgrader and in situ operations. The oil-products sector handles refined products to be distributed across the country. Lastly, the research center at the University of Calgary's University Innovation Park provides laboratory and technical services for the business units.

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