Western Energy and North American Gas Report--Canada's Oil Sands
The approval of the Long Lake steam-assisted gravity drainage (SAGD) project in the Alberta's Athabasca region is a key signal that high natural gas prices may decrease reliance on natural gas as the ""fuel of choice"" for industrial gas demand in Alberta. The Long Lake project, when operating as designed, will produce 60,000 barrels per day of premium synthetic crude oil and consume almost no natural gas. The project is designed to gasify the heavy bottoms of the bitumen to produce a synthetic gas for power, steam generation, and hydrogen upgrading
- The Long Lake C$3.4 billion (Nexen Inc. and OPTI Canada Inc.) SAGD project received board approvals on February 12.
- The plan is the first integrated SAGD project and upgrader designed to gasify bitumen and consume almost no natural gas.
- The Long Lake project is predicated on the assumption of high natural gas prices (US$4 NYMEX range) for the foreseeable future.
