Monday , August 15 2022

Oil refining companies consider liquefied regeneration units to increase oil consumption by rail


Delays in oil pipeline project from Western Canada and increase in railroad capacity are a matter of billions of dollars for some oil producers to build a solution recovery plant.

Finished bitumen is a thick, sticky oil that needs to be diluted up to half of the light oil to leak it, but there is no need for a solvent for rail transport because it can be heated for loading and unloading the product.

Construction of liquefied recovery units at Alberta railroad terminals will allow increasing the efficiency and profitability of rail use to deliver a third of the bituminous bitumen in the south of the United States, according to analyst Eight Capital Phil Sork. Friday.

"The DRU can, in some cases, make an attractive profit, but more importantly, it will improve the rail and land landscape (with an output of about 600,000 barrels per day, an increase of approximately 190,000 barrels per day using the DRU railroad capacity)," he said.

"But reducing costs and maximizing liquefaction fluid is a key to making these efforts. Current barriers may be companies that are not in a hurry to build them. "

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Multiple bitumen supply via railways will release space on export oil pipelines, he added, reducing the wave of squeezed oil in Alberta, which led to a reduction in production this year following the fall of last year.

Water-treated or "neat" bitumen improves safety, as it does not seem to be flammable as it is diluted, says Skolnik.

Cenovus Energy Inc. is studying the construction of a rehabilitation unit at the Edmonton subway terminal costing from $ 800 million to $ 1 billion, Alex Turbayk said in an interview with Canadian Press.

He is capable of processing 180,000 barrels of liquefied bitumen per day, Conov's oil projects in North Alberta and about 60,000 barrels of solvent per day for recycling, he said.

"At the moment, every third tanker we send receives a solvent, and the solvent is dear to us, it does not matter. If we move the bitumen … this will reduce the cost of our cargo by one third, so it will be much more economical to transport oil through the railroad, "he said.

"Moreover, direct bitumen is the most attractive raw material for refined customers on the other side of the line. We believe that there may be additional value in removing the solvent. "

The investment decision can take several months and this will depend on how much of the proposed pipelines will be extended, "Purbayx said. Genovus promised to renew this offer on October Investor Day.

Competitive oils and its manufacturer, Imperial Oil Ltd, plan to build a reconditioning unit in Edmonton in 2015, but due to high construction costs and market uncertainty, said General Director Richard Kruger at a recent conference.

"We will consider some of these key assumptions," he said. "I would never say never. But it is not right for us right now ".

Manufacturer of Oilsands MEG Energy Corp. as well as the recovery of the solution, but did not agree to invest, said General Director Derek Evans at a recent conference.

"Solvent is an important part of our business. So we will continue to study the DRU, but we will be clear about what technologies can be used to reduce the amount of fluids that we need, "he said.

MEG has previously suggested partial refinement technology that reduces the amount of solvent needed to remove and transport heavy components from barrel bitumen.

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