North West Upgrading to Help Develop Region's Economic Potential
FLORENCE, ITALY - May 29, 2007 :- GE Oil & Gas has been selected as a supplier of choice for a new heavy oil upgrader plant northeast of Edmonton, Alberta, Canada that will play a key role in exploiting the full economic potential of Alberta's vast oil sands.
Under a contract of over US$80 million, GE Oil & Gas will provide North West Upgrading Inc., a Calgary-based, independent company, with centrifugal and reciprocating compressors, centrifugal pumps and air coolers. The new plant will upgrade low-value bitumen from Alberta's oil sands into light, low sulphur products such as diluents and ultra low sulphur diesel as well as other products that can be used by refineries to produce gasoline.
"Although GE Oil & Gas has provided equipment for a number of oil sands projects, this is the first supplier of choice agreement related to oil sands upgrading in which we will provide an extended portfolio of products," said Claudi Santiago, GE Senior Vice President and President and CEO of GE Oil & Gas. "GE's capability to supply a complete range of equipment for oil sands processing enables North West Upgrading to reduce the number of contracts for the project and centralize project management, inspection and engineering activities, leading to cost and time savings," added Santiago.
The North West Upgrader is based on conventional upgrading processes, including heavy hydrocracking and hydrotreating. By processing bitumen produced by oil sands operations on a fee-for-service basis, it will provide benefits to all bitumen producers, particularly those with non-integrated production, facilitating participation by such producers in the development of this important resource.
North West Upgrading anticipates receiving regulatory approvals for the project in 2007, with construction to start immediately thereafter. Deliveries of the GE equipment for the new plant will begin in the third quarter of 2008 and will be completed during the second quarter of 2009.
Located in Alberta's Industrial Heartland area of Sturgeon County, Alberta, the North West Upgrader project will be developed in three equally sized phases, which are scheduled to enter operation between 2010 and 2015. When all three phases are completed the project's total processing capacity will be 231,000 barrels per day of blended feedstock (150,000 barrels per day of crude bitumen).
The plant will produce:
With reserves of 175 billion barrels, Canada's oil sands deposits are second in the world only to Saudi Arabia. Oil sands are deposits of bitumen, a heavy, black viscous oil that must be rigorously treated to convert it into an upgraded crude oil before it can be used by refineries. Bolstered by projects such as the North West Upgrader, Canada's bitumen production is expected to grow from the current production levels of 1.1 million barrels per day to more than three million in the next eight to 10 years.
About GE's Oil & Gas business
GE's Oil & Gas business (www.geoilandgas.com) is a world leader in advanced technology equipment and services for all segments of the global oil and gas industry. Based in Florence, Italy, the company offers complete solutions for production, LNG, transportation, storage, refineries, and petrochemicals, as well as pipeline integrity solutions including pipeline inspection and pipeline asset management. Through its recent acquisition of VetcoGray, GE Oil & Gas has added products, systems and services for onshore and offshore drilling, completion and production to its portfolio.
For more information, contact:
Gabriele Peri
GE Oil & Gas
+39-055-423-8280
[email protected]
Ken Darling or Howard Masto
Masto Public Relations
+1-518-786-6488
[email protected]
[email protected]
Sara Hassett
GE Oil & Gas
[email protected]
+39-055-423-3361