11 May Suncor looks to initiate new Canada oil sands project
The Canadian oil sands industry has received a welcome boost in the shape of Suncor Energy’s (TSX:SU) ambition to start a new project in Alberta later this year.
A barrage of high-profile exits by major oil players have blighted the sector in recent months, with BP, Chevron, Shell and ConocoPhillips all deciding to divest of their oil sands assets, citing high costs.
However Suncor, Canada’s largest oil and gas producer, is hoping to sanction its 160,000 barrels per day (bpd) Lewis Project, located about 25km Northeast of Fort McMurray.
The Calgary-based company is yet to make a final investment decision, but if sanctioned the project will join the 80,000 bpd Meadow Creek East plant, which gained approval in March.
Suncor is also planning to file an application for the 40,000 bpd Meadow Creek West project later this year.
Alberta’s oil sands hold the world’s third-largest reserves of crude oil, operations across the region are drastically more expensive than comparable projects, due to its remote location and energy-intensive production methods.