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Released December 13, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oil exploration and production companies are trimming their capital-spending (capex) plans amid weakening crude prices, and Suncor Energy Incorporated (NYSE:SU) (Calgary, Alberta) is no exception: Despite strong financial results to date for 2024, the Canadian giant expects spending to be slightly lower in 2025 and focused largely on its developments in Alberta's oil sands region. Industrial Info is tracking nearly US$20 billion worth of active and proposed projects from Suncor, nearly all of which is attributed to projects in the oil sands.
Click on the image at right for a graph detailing active and proposed projects from Suncor, by project type.
Oil producers worldwide have been wrestling with a drop in crude prices that started during the second quarter, but Suncor executives point to C$3.8 billion (US$2.7 billion) in adjusted funds from operations and C$1.9 billion (US$1.34 billion) in adjusted operating earnings during the same period, all while hitting their net debt target. Executives highlighted Suncor's Fort Hills development north of Fort McMurray, Alberta, which they said was "right on plan" at 166,000 barrels per day (BBL/d).
Despite its success at Fort Hills, Suncor acknowledged earlier this year that it was holding off on a proposed expansion of the oil sands mine and processing plant, which is designed to increase bitumen production to 225,000 BBL/d. The company previously hoped to begin the expansion in mid-2025, but now says it will be mid-2029 at the earliest before it makes any large-scale move to secure new bitumen supply. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more through a detailed project report and plant profile.
Still, Suncor expects to finish construction in the first half of 2025 on an 800-megawatt (MW), natural gas-fired, combined-cycle (NGCC) cogeneration unit addition and a series of operational improvements at its Millennium mining and extraction facilities in the Fort McMurray area. The latter is part of a broader plan to add a fleet of 150 autonomous heavy-hauler trucks at three major sites, including 85 units at the Millennium/Steepbank site. The remaining units already have been deployed at Fort Hills and Suncor's North Steepbank site. Subscribers can learn more from detailed reports on the NGCC unit and operational improvement projects.
"We continue to prudently invest in sustaining our integrated asset base and advancing key projects like the base plant cogen project, the Upgrader 1 coke drum replacement project, Fort Hills North Pit development and the Mildred Lake West mine expansion," said Richard Kruger, the chief executive officer of Suncor, in a recent quarterly earnings-related conference call. "This record operational performance underpinned our strong quarterly financial results."
Suncor is at work on the US$1.5 billion MLX-West addition to its Mildred Lake oil sands mine near Fort McMurray, which is part of a broader effort to extend the mine's life by 14 years. Construction began in early 2021 and is expected to wrap up in second-quarter 2025. Nearby, the company is preparing to begin work on a US$275 million replacement of four coke drums at its Upgrader 1 refining unit, all of which are nearing the end of their useful lives. Subscribers can learn more from detailed reports on the MLX-West addition and Upgrader 1 work.
"We also achieved 488,000 BBL/d of refining throughput and 105% refinery utilization in the downstream [during the second quarter], which is our best quarter ever," Kruger said of Suncor's refining business. "As well, we saw 612,000 BBL/d in refined product sales, also a quarterly record."
Suncor also is weighing a series of proposed improvements at its refinery in Sarnia, Ontario, including plans to reduce emissions at its Houdry Catalytic Cracking Unit (HCCU), add a sulfur-storage pit and add another burner-management system. These projects are designed to meet regulations requiring decreased sulfur dioxide (SO2) emissions. Subscribers can read detailed reports on the HCCU, sulfur-storage pit and burner-management projects.
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 detailed reports for active and proposed projects from Suncor.
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 proposed projects from Suncor, by project type.Oil producers worldwide have been wrestling with a drop in crude prices that started during the second quarter, but Suncor executives point to C$3.8 billion (US$2.7 billion) in adjusted funds from operations and C$1.9 billion (US$1.34 billion) in adjusted operating earnings during the same period, all while hitting their net debt target. Executives highlighted Suncor's Fort Hills development north of Fort McMurray, Alberta, which they said was "right on plan" at 166,000 barrels per day (BBL/d).
Despite its success at Fort Hills, Suncor acknowledged earlier this year that it was holding off on a proposed expansion of the oil sands mine and processing plant, which is designed to increase bitumen production to 225,000 BBL/d. The company previously hoped to begin the expansion in mid-2025, but now says it will be mid-2029 at the earliest before it makes any large-scale move to secure new bitumen supply. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more through a detailed project report and plant profile.
Still, Suncor expects to finish construction in the first half of 2025 on an 800-megawatt (MW), natural gas-fired, combined-cycle (NGCC) cogeneration unit addition and a series of operational improvements at its Millennium mining and extraction facilities in the Fort McMurray area. The latter is part of a broader plan to add a fleet of 150 autonomous heavy-hauler trucks at three major sites, including 85 units at the Millennium/Steepbank site. The remaining units already have been deployed at Fort Hills and Suncor's North Steepbank site. Subscribers can learn more from detailed reports on the NGCC unit and operational improvement projects.
"We continue to prudently invest in sustaining our integrated asset base and advancing key projects like the base plant cogen project, the Upgrader 1 coke drum replacement project, Fort Hills North Pit development and the Mildred Lake West mine expansion," said Richard Kruger, the chief executive officer of Suncor, in a recent quarterly earnings-related conference call. "This record operational performance underpinned our strong quarterly financial results."
Suncor is at work on the US$1.5 billion MLX-West addition to its Mildred Lake oil sands mine near Fort McMurray, which is part of a broader effort to extend the mine's life by 14 years. Construction began in early 2021 and is expected to wrap up in second-quarter 2025. Nearby, the company is preparing to begin work on a US$275 million replacement of four coke drums at its Upgrader 1 refining unit, all of which are nearing the end of their useful lives. Subscribers can learn more from detailed reports on the MLX-West addition and Upgrader 1 work.
"We also achieved 488,000 BBL/d of refining throughput and 105% refinery utilization in the downstream [during the second quarter], which is our best quarter ever," Kruger said of Suncor's refining business. "As well, we saw 612,000 BBL/d in refined product sales, also a quarterly record."
Suncor also is weighing a series of proposed improvements at its refinery in Sarnia, Ontario, including plans to reduce emissions at its Houdry Catalytic Cracking Unit (HCCU), add a sulfur-storage pit and add another burner-management system. These projects are designed to meet regulations requiring decreased sulfur dioxide (SO2) emissions. Subscribers can read detailed reports on the HCCU, sulfur-storage pit and burner-management projects.
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 detailed reports for active and proposed projects from Suncor.
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).
