OPTI in for the Long haul

Wednesday, 24 September 2008 21:21

CARRIE KELLY The Pipeline The Long Lake oilsands project is ready to produce premium sweet crude, OPTI Canada president Sid Dykstra announced. The project remains on-track for upgrader start-up and first commercial production of crude right away, Dykstra said in September. And the company plans to use every drop from each barrel it draws from the land. In a typical barrel of oil drawn from the oilsands, about 15 per cent is a waste product, Dykstra said. But Long Lake will be using the patented OrCrude process so it can use 100 per of the bitumen. “We take the bottom part of the barrel and instead of turning it into coke, we use it as a fuel source,” he explained. “We’re significantly reducing the need to purchase natural gas for steam generation and hydrogen production.” Long Lake will produce premium sweet crude of what is to be the highest quality yet to come from Canada’s oilsands, according to Dykstra. It is to be rated 39 degrees API with very low sulfur content and characteristics for making transportation fuels. It will take about 12 to 18 months to get Long Lake's production volumes up to the anticipated 72,000 bpd for Phase I, he continued. Evaluations of the upgrader's operational readiness indicated that it could be started up with about 23,000 to 25,000 barrels per day of bitumen in-take.  "In order to start up, we need to buy some bitumen," said Dykstra.  Long Lake can produce about 15,000 barrels per day in these early days, so another 10,000 barrels of bitumen per day will be purchased temporarily. Dykstra also announced that Long Lake is planning a CO2 injection test with an industry group to determine the most effective means for carbon dioxide disposal. “We are currently contemplating adding CO2 capture facilities in future phases to allow us to meet the obligations both federally and provincially,” he said. The Long Lake project, about 40 kilometres from Fort McMurray, is a joint partnership between Nexen and OPTI. “We own 50 per cent of the Long Lake lease,” Dykstra explained of OPTI’s share. "Each one of the leases covers about 100 square miles. Phase I covers 26 square miles.” There are six phases planned. The plan is to sanction Phase II in late 2008, but first Phase I has to be not only up and running, but up and running well, Dykstra concluded.