Shell Canada withdraws plans for 400,000 bpd ugrader expansion

Shell Canada has dropped its plan to build a 400,000 barrel-per-day oilsands upgrader expansion. The company has withdrawn its regulatory application and will now be presenting a multibillion-dollar debottlenecking plan.

Crude from oil sands is heavy in bitumen, which is converted into refinery-ready light oil by upgraders.

According to John Abbott, executive vice-president for heavy oil, at the Canadian arm of Royal Dutch Shell, said Shell Canada has plans for building a three-phase programme to boost mining and upgrader output by 85,000 bpd with the existing upgrader. He was speaking to the media yesterday.

The first phase, which will focus mainly on the mining side would cost around $2 billion and add 35,000 bpd to the 255,000 bpd capacity of the Muskeg River and Jackpine mines as also its Shell Scotford refinery just northeast of Edmonton.

He added that in the next phases 15,000 and 35,000 bpd would be added and the details on what it would entail and estimated cost was not yet available.

''We have decided to withdraw the application for our new upgrading facility,'' Abbott said. ''That was a proposed 100 per cent Shell equity, 400,000-bpd facility which could have been constructed adjacent to our existing facilities in Fort Saskatchewan.