North West Redwater Partnership Announces Sanction for the Construction of
Phase 1 of the Sturgeon Refinery
CALGARY, Nov. 8, 2012 /CNW/ - North West Redwater Partnership (NWR), a
partnership between North West Upgrading Inc. (NWU) and Canadian Natural
Upgrading Limited (CNUL), a wholly owned subsidiary of Canadian Natural
Resources Limited (Canadian Natural), is pleased to announce that the Board of
Directors for each partner has approved the construction of Phase 1 of the
Sturgeon Refinery. NWR will build and operate a world class bitumen refinery
in Alberta's Industrial Heartland, which will add significant value to
Alberta's bitumen resources in a responsible and sustainable manner. The first
50,000 barrels per day phase of the bitumen refinery has a cost estimate of
$5.7 billion and is expected to take approximately three years to build, with
above ground construction starting in spring 2013.
"The formal approval to develop this project is a major milestone for NWR,"
said Doug Quinn, President of NWR. "A lot of time and effort has been spent
during the last eight years to get us here. NWR has a great team and a
well-developed plan to deliver a refinery that will operate with high
reliability. It's the right time and what we are building will add
significantly to the value that Alberta receives for its bitumen."
NWR has thirty year processing agreements for 100 per cent of its Phase 1
feedstock capacity. The Alberta Petroleum Marketing Commission, an agent of
the Province of Alberta, will supply 75 per cent of the feedstock volume and
Canadian Natural will supply the balance of the feedstock volume. Each party
will own their proportionate share of the products produced by the Sturgeon
Refinery and sold into the market. Steve Laut, President of Canadian Natural
commented, "This project supports Canadian Natural's marketing strategy to
increase conversion capacity for heavy oil and the structure allows for
participation without any reduction in our ability to stay focused on
developing our vast resource potential. We are happy with the progression to
this point and are pleased to be working with the people of North West
Redwater, who have extensive experience in building and operating such
facilities, and will help ensure the success of the project and advance the
Government of Alberta's efforts to add value to its resources here in Alberta."
This project represents the first of potentially three phases of 50,000
barrels per day accumulating to a 150,000 barrel per day plan to convert
bitumen to high value products, primarily ultra-low sulphur diesel for local
and export markets. "This project will demonstrate that Alberta has the lowest
carbon footprint solutions for converting bitumen into diesel fuel," said Ian
MacGregor, Founder and Chairman of NWU. "This is the first refinery in the
world that incorporates CO(2) capture into the initial design. The facility
will capture 1.2 million tonnes of CO(2) per year per phase, which will be
sold for use in enhanced oil recovery before being sequestered."
NWR currently has a team of over 300 people working on the project and expects
to employ over 8,000 people during peak construction, including sub-suppliers
and module fabrication yards.
About North West Redwater Partnership
North West Redwater Partnership was formed in 2010 as a 50/50 partnership
between NWU and CNUL, a wholly owned subsidiary of Canadian Natural to build
the world's first bitumen refinery which will combine the already proven
processes of gasification technology with an integrated carbon capture and
storage solution. The Sturgeon Refinery, which will be located 45 km
north-east of Edmonton, is also the first bitumen refinery to sell its CO(2)
for the purposes of enhanced oil recovery. NWR could expand capacity to
convert 150,000 barrels of bitumen directly to fuels and other high value, low
sulphur products required in the Alberta and world markets in three equal
phases of which Phase 1 has now been sanctioned. The process is also optimized
to minimize the environmental footprint of the facility and make the bitumen
upgrading/refining process sustainable in Alberta. For more information,
please visit our website at www.nwrpartnership.com.
For more information on North West Upgrading Inc. or Canadian Natural
Resources Limited, please see www.northwestupgrading.com,
Shauna MacDonald Media Relations North West Redwater Partnership 403-538-5645
SOURCE: North West Upgrading Inc.
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CO: North West Redwater Partnership
-0- Nov/08/2012 13:00 GMT
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