Suncor Project Voyageur, Fort McMurray, Alberta, Canada

Suncor (Suncor Energy Services Inc, formerly Great Canadian Oil Sands) have been involved in oil sands bitumen recovery and upgrading for crude oil production since 1967 and in 2006 produced their billionth barrel of oil.

Project Voyageur is the centrepiece of the Suncor growth strategy. This is a multi-phase plan to increase oil sands production to more than 550,000 barrels a day by 2010–2012, a 120% increase over 2004 production.

Suncor submitted a regulatory application for Project Voyageur in March 2005, which focused on constructing a third upgrader just southwest of the original facility. Suncor's growth strategy also includes a strong focus on 'Firebag' in situ oil sands technology, with its smaller footprint on the land and ability to access reserves not economically recoverable through conventional mining.

The Voyageur goals were set out by the company in 2001. As part of the project a vacuum unit was added to the Suncor number two upgrader (started in 2002 and completed in late 2005), which cost $425m and increased output by 35,000bpd.

OFFSETTING ENVIRONMENTAL COSTS

Since recovery of crude oil from oil sands developments is a process which releases more carbon dioxide into the environment than conventional oil production, Suncor has a strategy to offset carbon dioxide produced by the development of cleaner energy resources.

Suncor is a partner in two wind farms – the Magrath wind power project in southern Alberta and the SunBridge project in Saskatchewan. Together, they can generate enough clean electricity to offset 115,000t of carbon dioxide annually. As the wind power market continues to develop, Suncor aims to build a new wind farm every 12–18 months.

Suncor also began selling ethanol-blended gasoline at 500 Sunoco retail stations in 1996 as a cleaner-burning, renewable resource that reduces emissions. Suncor is currently building a $120m ethanol plant in Ontario's St. Clair Township, which is expected to produce 200 million litres of ethanol per year, and will be built with funding from the Canadian government's ethanol expansion program.

PROJECT VOYAGEUR

Construction is ongoing for the next phase of oil sands growth as part of the Voyageur Project. This will give production capacity of 350,000bpd by mid-2008 and includes a new pair of coke drums – the largest ever constructed (using Conoco Philips ThruPlus delayed coking technology) – and a sulphur recovery plant (total cost $1bn).

Suncor's Firebag in situ operations are located 40km northwest of the original oil sands plant and will form a key part of the increased bitumen supply to the upgraders as the project progresses.

Key elements of the Voyageur Project are the construction of a third oil sands upgrader in Fort McMurray; expansion of the bitumen supply; and the continuation of third-party bitumen supplies.

Plans call for the new upgrader to be constructed approximately half a kilometre south-west of existing Suncor upgrader facilities near the Steepbank, North Steepbank extension and Millenium mines.

The new facility will include cokers, hydrotreaters, synthetic gas production, product storage tanks, utilities, administration and a 50km hot bitumen pipeline to connect the upgrader with the Suncor in situ operations. Preparations began on the site but construction was not allowed to start until the project had been approved.

The construction began in March 2007 following final approval being granted at a hearing of the Alberta Energy and Utilities Board (EUB) in January 2007 (with certain conditions).

The upgrader has been designed to produce light crude oil and production from the new facility will be brought online in phases starting in 2010 with full capacity of approximately 550,000bpd targeted in 2012. It is estimated that constructing the upgrader will cost C$7bn (US$6.3bn).

Suncor has also identified the need for additional pipeline capacity from Fort McMurray to Edmonton and the company is pursuing various options to accommodate the additional volumes. The construction of the upgrader would employ approximately 4,000 workers. Approximately 300 new permanent jobs at Suncor's oil sands facility are expected to be created when the upgrader is in full operation.

Suncor also intends to build and operate a petroleum coke gasifier that would reduce the company's reliance on natural gas. The gasifier is planned to process about 20% of the proposed upgrader's petroleum coke (a byproduct of the upgrading process) into synthetic gas. The synthetic gas would then be used to supply hydrogen and fuel. The gasifier will add an estimated $600m to the total cost of this project.

BITUMEN RESERVES

Suncor's Steepbank and millennium mines currently produce 263,000bpd and its Firebag in situ project produces 35,000bpd. It intends to spend $3.2bn to expand its mining operations to 400,000bpd and its in situ production to 140,000bpd by 2008. An estimate of the recoverable oil resources on Suncor leases is nine billion barrels of crude oil.

At current rates of production, the Athabasca oil sands reserves as a whole could last over 400 years. New in situ methods have been developed to extract bitumen from deep deposits by injecting steam to heat the sands and reduce the bitumen viscosity so that it can be pumped out like conventional crude oil.

Also the use of light hydrocarbon injection to decrease the viscosity of the bitumen is being investigated, which would use much less gas since not so much steam would be required for recovery. The standard extraction process usually requires huge amounts of natural gas. Suncor is offsetting the gas demands of expanded extraction operations by building a new petroleum coke gasifier.

Suncor's in situ plans will use recycled water in a closed system for steam generation. No additional surface or ground water will be required and no tailings ponds will be created. In situ is expected to disturb only about 10% of the surface land in the development area (the recovery of material using this method is however much less than other conventional methods).

PROJECT VOYAGEUR CONTRACTORS

Jacobs Engineering Group is providing detailed front-end engineering and design services for the new sulphur complex at Fort McMurray. The complex will include two sour water strippers, an amine unit, two sulphur recovery trains and an option for a third train, sulphur degassing, and an LT SCOT tail gas treating unit.

In addition, a Canadian subsidiary of Jacobs Engineering is carrying out a piping project involving 750,000 hours of field labour. The work consisted of a planning phase, followed by the fabrication and installation of the required tie-ins and interconnecting piping.

A total of 650 tie-in points and the associated interconnecting piping are required to connect the existing Plant 52 into the new Millennium coker unit facility. Construction was completed in March 2007.

Meanwhile Suncor awarded UOP a contract for the licensing and design of two new hydrotreating units. The new Unionfining units are designed to upgrade delayed coking unit products. There will be one to process distillate feedstock and another to process gas oil range feedstock.

Emerson Process Management also signed a seven-year deal for the supply of automation products and services for Suncor during the course of the Voyageur project.

SUNCOR VOYAGEUR VILLAGE

The Suncor Voyageur Village (designed by SHB Architects) construction management contract was awarded to EllisDon in June 2007. The C$153m project will consist of an administration building and other support buildings on the site 20km north of Fort McMurray.

The project will consist of: an administration building (286,000ft²) housed in eight storeys, a 22,000ft² firehall and medical building, a 50,000ft² special service building and a 30,000ft² maintenance building.

Site development will also include a 400,000ft² parking area and a 10,000ft² patio. Construction began in July 2007.