November 08, 2012 - 11:48 AM
CALGARY - The first phase of an Edmonton-area bitumen refinery has received the green light from its owners.
The boards of directors of North West Upgrading Inc. and Canadian Natural Resources Ltd. (TSX:CNQ) have given their formal blessing to the Sturgeon refinery in Alberta's Industrial Heartland.
The project is expected to cost $5.7 billion and will process 50,000 barrels per day of bitumen from Alberta oilsands once the first phase starts up.
The refinery will take about three years to build and above-ground construction is set to begin in the spring.
The Alberta government will supply 75 per cent of the bitumen to the refinery as part of a program to help support the province's oilsands processing industry, while Canadian Natural (TSX:CNW) will supply the rest.
The facility will capture 1.2 million tonnes of carbon dioxide, which will be sold to oil companies who can use the gas to increase pressure in mature reservoirs and boost production.
News from © The Canadian Press, 2012