Thursday, April 24th5.9°C
19345
20872

Cost rises to $8.5B for North West refinery project northeast of Edmonton

CALGARY - A partnership that plans to build an oilsands refinery northeast of Edmonton says the cost of the project has risen to $8.5 billion.

North West Redwater Partnership also said in a news release Wednesday that the startup date for its bitumen upgrader has been pushed back to September 2017 from mid-2016.

When the project was approved in November 2012, the cost was estimated at $5.7 billion.

The partnership, made up of North West Upgrading Inc. and Canadian Natural Upgrading Limited, a wholly owned subsidiary of Canadian Natural Resources Limited (TSX:CNQ), said the higher cost is "due to a combination of cost inflation and the inability to fully capture certain cost savings initiatives."

It also says that it believes the merits of the project are still positive.

The refinery is expected to process 50,000 barrels per day of raw bitumen supplied by Canadian Natural and the Alberta Petroleum and Marketing Commission.

"The toll payers believe, that upon successful completion of the project, this refinery will strengthen their organizations through providing a competitive return on investment and by adding 50,000 barrels per day of bitumen conversion capacity in Alberta which will help improve pricing and reduce pricing volatility on all Western Canadian heavy crude oil that they produce or are entitled to market through royalties," the press release said.

"This project will provide a local market for Alberta oilsands production that is not reliant on export pipelines, and a low carbon solution that will ensure that the CO2 footprint of the products produced by the refinery will be among the lowest in the world."

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14533.39-22.58
S&P CDNX1010.986.10
DJIA16501.65-12.72
Nasdaq4126.967-34.491
S&P 5001875.39-4.16
CDN Dollar0.9071+0.0006
Gold1283.70-0.50
Oil102.15-2.22
Lumber332.60+1.00
Natural Gas4.762+0.032

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.22+0.01
Cantex0.05+0.005
Anavex Life Sciences0.38-0.005
Metalex Ventures0.080.00
Russel Metals31.30+0.13
Copper Mountain Mining2.33-0.05
Colorado Resources0.27+0.01
ReliaBrand Inc0.11+0.03
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.250.00

 



21269

FEATURED Property
1922870793 Glenwood Avenue
4 bedrooms 1 baths
$329,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


On living and dying

Our ability to live beyond our years has nothing to do with medical science; we will all live longer than our physical bodies, each of us will leave behind a personal legacy made up of our deeds, our ...


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...

_








Member of BC Press Council