Husky’s Spruce Lake Central thermal project achieved first oil and will be ramping up to full production over the next couple of months.
The project started in 2015 and was completed on schedule this past year and began steaming in the second quarter of 2020. The company’s sixth thermal bitumen project is expected to produce 10,000 barrels per day and is linked to the Lloydminster Upgrader, the asphalt refinery and Midwest U.S. refineries.
Husky notes the projects are not subject to the government-mandated production quotas in place in Alberta.
The company is looking at the next step of starting up the Liuhua 29-1 field at the Liwan Gas Project. The expected first gas production and sales by November.
“Both Spruce Lake Central and the Liuhua 29-1 field are expected to generate immediate strong free cash flow at current pricing as they come onstream,” CEO Rob Peabody says. “Our portfolio of lower-cost, higher margin projects reinforces our resilience in a challenging market environment.”
Production is expected to hit 45 million cubic feet per day of gas and 1,800 barrels per day of liquids once fully ramped up.