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

Current Conditions

Partly Cloudy
-1.8°C

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

December 04, 2013 - 6:34 PM

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

News from © The Canadian Press, 2013
The Canadian Press

  • Popular kelowna News
  • Comments
  • RCMP make arrest for 2019 killing of homeless Kelowna teen
    An 18-year-old woman has been arrested for the 2019 killing of Elijah Beauregard. Beauregard was fatally stabbed in downtown Kelowna June 27, 2019, and on Feb. 21,  an unnamed woman was
  • Major delays on Coquihalla, Drive BC issues warning
    Conditions on the Coquihalla, near the Great Bear snowshed, have been pretty intense for motorists, prompting DriveBC to issue a warning. #BCHwy5 - A look at the situation moments ago
  • UPDATE: Highway 1 open after major accident
    After a major vehicle accident closed Highway 1 between Revelstoke and Sicamous this morning, the road has been reopened. According to Drive BC, the incident occurred around 9 a.m. at Three
  • Snowstorm to hit Coquihalla, valley bottom
    Snow is expected to fall across the Southern Interior today but the biggest weather change will be on mountain passes, which could see quite a significant accumulation of snow. A snowfall wa
  • New mountain highway proposed between Red Deer and Kamloops
    An Alberta development group is pitching the idea of a new highway linking central Alberta to B.C. cutting through the mountains and a section of Banff National Park. The Central Alberta Eco
View Site in: Desktop | Mobile