Husky Energy Lloydminster Upgrader Resumes Normal Operations
Husky Energy Inc. (HSE), the Canadian oil company controlled by Hong Kong billionaire Li Ka-Shing, said its Lloydminster oil-sands upgrader in Saskatchewan resumed normal operations after a Feb. 2 fire cut output.
The upgrader is operating at 75 percent to 85 percent of capacity and moving toward full production, the Calgary-based company said in a statement. The pretax cost of the incident is estimated at C$80 million ($83.7 million) to C$90 million, Husky said.
The fire damaged a hydrocracker fractionation unit that supplies product to the coker at the facility, near the Alberta- Saskatchewan border. Repairs were hampered by congested space and extreme cold, Husky said. The upgrader, which can process up to 82,000 barrels daily, operated at 40 percent to 50 percent of normal rates during the repairs.
The fire started when a pipeline froze and burst, releasing fuel onto equipment, Husky said. The cause has been analyzed and repairs have been made incorporating measures to prevent a similar incident in the future.
To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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