Ikelic - Alliance Digital Repository
Ikelic - Alliance Digital Repository
Ikelic - Alliance Digital Repository
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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