Petro-Canada Oil Sands Inc., on behalf of the Fort Hills Energy L.P., on Thursday filed an application with the Alberta Energy and Utilities Board (EUB) and Alberta Environment (AENV) to construct and operate the Sturgeon Upgrader, about 40 kilometers northeast of Edmonton, Alberta.
The upgrader is expected to eventually process up to 340,000 barrels per day (b/d) of bitumen from the Fort Hills mine and other production sources into as much as 280,000 b/d of synthetic crude oil, pending regulatory approval and project sanction. The crude oil would then be marketed for refining into consumer products such as gasoline and diesel.
The Fort Hills mine, which obtained regulatory approval in 2002 for up to 190,000 b/d of bitumen production, is located about 90 kilometers north of Fort McMurray, Alberta. First production is planned in 2011.
"This regulatory filing is a big step forward on the Fort Hills Project," said Neil Camarta, Petro-Canada's Senior Vice-President, Oil Sands. "By integrating the Fort Hills mine with the Sturgeon Upgrader, we will capture the full oil sands value chain right here in Alberta."
Fort Hills Energy L.P. consists of Petro-Canada with a 55% working interest, UTS Energy Corporation with a 30% working interest and Teck Cominco Limited with a 15% working interest, with Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada, as the contract operator for the project.
Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally.
UTS Energy Corporation is focused on growing and developing oil sands assets, with a market capitalization of approximately $1.8 billion. UTS was instrumental in re-establishing the Fort Hills Oil Sands Project and is the principal founder of the Fort Hills Energy L.P. Based in Calgary, Alberta.
Teck Cominco Limited is a diversified mining company, headquartered in Vancouver, Canada.