02.03.2013 Views

Ikelic - Alliance Digital Repository

Ikelic - Alliance Digital Repository

Ikelic - Alliance Digital Repository

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

OIL SANDS<br />

groups prior to the filing of the application and<br />

continued up to (and in some cases, during) the<br />

hearing.<br />

Syncrude filed the first volume of its application<br />

with the Board in September 1992. Syncrude's<br />

application was considered by a division of the<br />

Board (the panel) at a public hearing in Fort<br />

McMurray, Alberta commencing on<br />

September 8, 1993. At the outset of the hearing<br />

a motion to adjourn was made by the Fort McKay<br />

First Nation and SEAC. Arguments on the<br />

Board's jurisdiction to hear Syncrude's applica<br />

tion were heard by the Court on March 3, 1994,<br />

and the Court confirmed the Board's jurisdiction<br />

to proceed with the hearing.<br />

Production Capability<br />

The most recent application proposes to use the<br />

existing facilities to increase SCO production to a<br />

maximum of 12.6 million cubic meters per year<br />

(the staged development). This increase is<br />

separate from the previously<br />

approved expan<br />

sion project. By undertaking that project,<br />

Syncrude could further increase production by<br />

up to another 5.0 million m3/yr.<br />

To achieve the 12.6 million m3/yr level of SCO<br />

production, Syncrude proposed two operating<br />

modes for its bitumen upgrading facilities which it<br />

referred to as the "Base"<br />

and "Once-through"<br />

modes. The Base mode would achieve higher<br />

production by improving service factors and in<br />

feedrates to the cokers and<br />

creasing<br />

hydrocracker. The Once-through mode would<br />

also incorporate a higher SCO yield in addition to<br />

the foregoing<br />

improvements. To achieve this<br />

maximum level of production would require<br />

hydrocracking feedrates significantly higher than<br />

service factors<br />

the original design and upgrading<br />

of 100.0 percent. Service factors this high would<br />

only<br />

be achieved in years that do not require<br />

scheduled maintenance shutdowns. Syncrude<br />

expected that typical years would see service fac<br />

tors in the 95.0 percent range which would be suf<br />

ficient to sustain SCO production near the<br />

12.0 million m3/yr level.<br />

3-3<br />

Expansion Project Design<br />

In 1988, Syncrude received Board approval for<br />

an expansion project that would increase SCO<br />

production by 5.0 million m3/yr beyond the ap<br />

proved limit of 10.0 million m3/yr. The approval<br />

was conditional on the construction for the<br />

project commencing by December 31, 1992.<br />

The expansion project design was based on:<br />

- Truck-and-shovel<br />

- Expanded<br />

mining and warm<br />

slurry<br />

production<br />

extraction for incremental bitumen<br />

catalyst bed hydrocracking<br />

for the incremental bitumen conversion<br />

(primary upgrading) capacity<br />

In its most recent application, Syncrude<br />

proposed to modify its original design to include<br />

the hydraulic transport (hydrotransport) of oil<br />

sand which it believed was an improvement over<br />

the original design.<br />

The original expansion project approval was<br />

based on a maximum level of SCO production<br />

after expansion of 15.0 million m3/yr. Syncrude<br />

requested that the approved SCO production<br />

limit now be amended to specify 17.6 million<br />

m3/yr to reflect the full capability of the expan<br />

sion project when added to the requested new<br />

limit of 12.6 million m3/yr for the existing<br />

facilities. The specific capacity<br />

of the expansion<br />

project could ultimately be anywhere from 14.5<br />

to a maximum of 17.6 million nrr/yr.<br />

Syncrude also applied for a 5-year extension (to<br />

December 1997) to the date by which construc<br />

tion of the expansion project must proceed. It<br />

argued that the business climate, to this point in<br />

time, had not favored proceeding with a major<br />

expansion and current conditions continued to<br />

remain unfavorable.<br />

Bitumen Supply<br />

Syncrude's bitumen production forecasts con<br />

tained in the application were based on a<br />

THE SYNTHETIC FUELS REPORT, JANUARY 1995

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!