Suncor’s Firebag expansion gets OK

The first two stages of Suncor Energy’s (SU-T, SU-N) Firebag in situ oilsands project have been in operation since 2003 and 2005, respectively, with combined production of about 60,000 barrels per day. Stage three has a planned production capacity of roughly 62,500 barrels per day.

The $3.6-billion project, which includes pre-built infrastructure for future stages, is under construction with first production expected in mid-2011 and ramping up over the following 18 months.

In mid-March, the Alberta Energy Resources Conservation Board approved Suncor’s application to develop three additional stages at Firebag: stages four, five and six, with each stage having a planned production capacity of about 62,500 barrels per day.

Preliminary work is underway on Firebag stage four, with production targeted in late 2012.

Cost estimates for stages four to six have yet to be confirmed.

Suncor uses cutting-edge in situ technology to extract bitumen at Firebag, about 40 km northeast of Suncor’s original oilsands plant. Unlike traditional open-pit mining, steam is injected into the bitumen reservoir about 300 metres below the surface.

The planned facilities will employ steam-assisted gravity drainage (SAGD) technology, a thermal recovery process that allows the development of deeper oilsands deposits while limiting land disturbance at surface. Approved facilities include well pads, water treatment facilities and co-generation plants that produce steam while also generating electricity.

According to Suncor, national gas fueled co-generation plants are expected to supply steam while producing electricity at a carbon dioxide per megawatt-hour intensity lower than the current provincial average.

Once the facilities are at full capacity, water-recycle rates are expected to surpass 90%, with make-up volumes drawn primarily from process waste-water sourced from the company’s existing facilities. The regulatory applications did not include a request to increase the company’s water withdrawal licence. In situ production does not require tailings ponds.