Wildfire Forces Suncor to Run Fort McMurray Upgrader 1 at Reduced Rate, Maintenance Work Halted on Upgrader 2

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Researched by Industrial Info Resources (Sugar Land, Texas)--Suncor Energy's (NYSE:SU) (Calgary, Alberta) oil sands Upgrader 1 in Fort McMurray has been running at minimal rates due to the massive wildfire in Alberta, and maintenance on the Upgrader 2 unit has been halted, IIR Energy reports.

The Upgrader 1 unit was forced to run at minimal rates since May 6 when the Fort McMurray fire was still in its infancy. Prior to the halt due to dangerous conditions, maintenance work on the Upgrader 2 unit was scheduled to be completed May 17. A new completion date remains unknown. The maintenance work began March 22.

The wildfire's unexpected turn to the north from Fort McMurray this week forced oil sands companies to undergo a second evacuation of employees from camps and lodgings in the area. Although Suncor's Upgrader site has not been damaged, the conditions in the surrounding areas remain dangerous, and it is unknown when it will be deemed safe for non-essential plant personnel to return to the facility. For more information on the recent wave of evacuations due to the fire, see May 17, 2016, article: Alberta Wildfire Shifts North, Forces Oil Sands Producers to Re-evacuate.

State-owned export credit agency Export Development Canada (Ottawa, Ontario) said in a press statement Wednesday the ongoing wildfires in Alberta "will interrupt oil flows significantly in the second quarter of this year, though the full impact on production is not yet known. A full recovery of oil flows is expected in the second half of the year."

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