Project Profile
Value: US$8.5 billion
Location: Sturgeon County, Alberta\'s Edmonton Capital Region, Canada
Capacity: 50,000 b/d and 1.2 million tonnes/year of carbon dioxide (two further phases with capacities of 50,000 b/d each for a total of 150,000 b/d)
Production: Unknown
Start-up Year: 2017
Canadian Natural Resources Ltd. together with North West Upgrading Inc. has submitted a proposal to Alberta for constructing and operating a bitumen upgrader and refinery, the Sturgeon bitumen refinery. The refinery will be located near Redwater in Sturgeon County, Alberta\'s Edmonton Capital Region, Canada. In conjunction with the proposal, CNRL plans to acquire 50% of the assets of NWU and form a partnership to construct and operate the facility. Phase 1 of the proposed upgrader includes a one-step conversion of 50,000 b/d of bitumen to finished products. The process incorporates gasification to convert the bottom of the barrel to hydrogen and reduce the need for natural gas. The company plans to use the CO2 generated at the facility for enhanced oil recovery, thereby reducing emissions. CNRL will hold a 50% interest in the facility and will supply 12,500 b/d of its own bitumen production to Phase 1 of the facility.
Capacity of the first phase, estimated to cost US$5.7 billion. The facility will capture 1.2 million tonnes/year of CO2 to be sold for use in enhanced oil recovery. Under 30-year processing agreements, Alberta Petroleum Marketing Commission, an agent of the province of Alberta, will supply 75% of the feedstock. CNRL will supply the rest. The suppliers will receive proportionate shares of the products. Two further phases with capacities of 50,000 b/d each are envisioned for the refinery, near Redwater in Sturgeon County, about 45 km northeast of Edmonston. The main product will be ultralow-sulfur diesel. CO2 capture is planned in each phase. In February 2005, NWU completed the environmental impact assessment for the project and in August 2007 received Alberta Energy and Utilities Board (EUB) approval. It started site preparation work in October 2007 and has completed front end engineering and procurement of long lead, crucial equipment. NWU plans were for Phase 1 to be fully operational in 2013.once completed, Phase 1 of the US$8.5 billion project will have a processing capacity 50,000 b/d and will capture 1.2 million tonnes/year of carbon dioxide to be sold for use in enhanced oil recovery. Two further phases with capacities of 50,000 b/d each also are planned for the refinery. Following commissioning of all three phases, the Sturgeon refinery will operate at a capacity of 150,000 b/d to produce diesel, diluent, and other bitumen products for both Canadian and global markets.
Operators:
Canadian Natural Resources Ltd.: Operator with 50% interest
North West Upgrading Inc: 50% interest
Contractors:
Jacobs Engineering Group Inc.: Engineering and procurement services
Emerson Process Management: Contract to provide automation services and technology for the first phase of NWR’s greenfield bitumen refinery project in Sturgeon County. Emerson Process Management will provide engineering, configuration, start-up, training, commissioning support, and other services related to the control and operations at the refinery. The contract includes delivery of Emerson’s DeltaV distributed control system and DeltaV safety instrumented system, both of which include Emerson’s Electronic Marshalling technology with characterization modules designed to simply connections between the control system and other instruments throughout the plant. Emerson also will deliver its Rosemount transmitters, Fisher control valves, and Micro Motion flowmeters to carry out essential measurement and control functions.
Pembina Pipeline Corporation: Provision of terminalling services for the North West Redwater Partnership (North West) with respect to Sturgeon Refinery. The terminalling services will be provided by Pembina to North West under a 30-year fixed return agreement and a 10-year NGL mix purchase and sale agreement related to the third fractionator Pembina is constructing at its Redwater site. The facilities include truck and rail loading, storage, as well as handling and processing equipment for a variety of products delivered from North West.
GE Water & Process Technologies: Contracted to provide wastewater treatment and recycling technologies.