PROCESSWEST Magazine Online

Gibson proposes building diluent recovery unit in Hardisty

December 5, 2019   Don Horne




Gibson Energy Inc. says it will build a 100,000-barrel-per-day diluent recovery unit near the Alberta oil marketing hub of Hardisty, a strategy expected to free up room in pipelines and on railcars for oil sands exports.

The Calgary-based company told Canadian Press it will partner with US Development Group, LLC, to construct and operate the facility, which would open in 2021.

Diluent, a light oil mixed with sticky, heavy bitumen to allow it to flow in a pipeline, makes up as much as a third of the volume of blended bitumen or “dilbit.”

The resulting heavy crude will be sent by Canadian Pacific in railcars to a new terminal in Port Arthur, Texas, owned by US Development, to be distributed to refineries on the U.S. Gulf Coast, while the diluent will be re-sold to Alberta oil sands producers.

Advertisment

Gibson says ConocoPhillips Canada, which owns the Surmont thermal oil sands project in northern Alberta with French partner Total S.A., has contracted to process 50,000 barrels per day of bitumen blend at the facility.

Oil sands producer Cenovus Energy Inc. has been actively investigating building a diluent recovery unit at its terminal near Edmonton which would cost between $800 million and $1 billion.

Gibson says the resulting “DRUbit” oil will be in a more concentrated, viscous state that creates safety and environmental benefits when transported by rail.

It says it is in talks with other potential producer and refiner customers to take up the other 50,000 bpd of capacity.

“We expect DRUs to be a critical part of solving the egress challenges western Canadian producers are facing, both today and over the long-term,” Gibson CEO Steve Spaulding told Canadian Press. “Improved netbacks for producers will drive increased oilfield and related business activity, create new jobs and help revive communities as well as positively benefit all levels of government through increased royalties and other levies.”

(Canadian Press)


Print this page

Related Stories

Leave a Reply

Your email address will not be published. Required fields are marked *

*