OPTI and Nexen have already received regulatory approvals for Phase 2 Upgrader capacity. Read more about our regulatory submissions here:
Long Lake Project: Phase 2
The Phase 2 Upgrader will be similar to that of Phase 1 to allow OPTI to take full advantage of information gained through building Phase 1.
Extensive planning is underway to identify ways to mitigate pressure on future project costs due to unprecedented levels of activity in Canada’s oil sands and the global energy industry. Activities in 2007 are expected to be directed toward developing a definitive cost estimate, execution strategy and project schedule and expected on stream dates based on a high level of engineering to provide sufficient information for potential sanctioning in 2008.
The new facilities are being designed to be built adjacent to the Phase 1 Upgrader to allow for integration and operational flexibility. The facility will be connected via pipeline to the new SAGD facilities. The Phase 2 Upgrader will be similar to that of Phase 1 to reduce engineering costs, reduce order time for equipment and allow OPTI to take full advantage of information gained through building Phase 1.
Development of the Phase 2 execution strategy, cost estimate and project schedule continues, with the goal of formally sanctioning the project in 2008. This includes ongoing engineering work to understand the implications of pending CO2 regulations, including currently evaluating the potential for incorporation of a shift reactor to facilitate CO2 capture. The timing of Phase 2 sanctioning will be contingent upon timing of SAGD regulatory approval, the capital cost estimate, Phase 1 ramp-up performance, commodity price environment, and certainty on CO2 and royalty regulations.
