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Husky considering expansion of asphalt facilities

A major player in the local economy is considering an expansion to their operations in the Border City.

According to statements made by company officials in their third-quarter call, Husky Energy is looking at the possibility of adding on to their asphalt production capacity in Lloydminster. A spokesperson for the company, Mel Duvall, said that the move is due to strong returns in the asphalt business.

“With our growing Lloyd thermal production, it would provide an ideal outlet for that crude,” said Duvall.

The news about Husky’s possible plan came in the wake of the company committing continued resources into thermal oil production in the Lloydminster area, with three 10,00 barrel per day projects up for sanctioning in the near future.

Husky has been putting the projects together in an effort to advance a resilient portfolio of capital projects, and the thermal production levels are expected to reach close to 80,000 barrels per day by the end of the year, up from around 18,000 barrels per day in 2010.

The asphalt expansion is now being studied by the company for the “economics of the various options,” according to Duvall.

“It’ll (the study process) give us the facts, and the numbers that will allow us to come to a decision,” said Duvall.

Duvall also said that it is too early to talk about the possible impact the project would have on employment levels in Lloydminster, during construction and operation. However, he did say it would be doubling the current asphalt production levels in the area, if it went forward.

“This is just another step forward that makes it a little bit closer to come to a decision,” said Duvall.

“A lot of it will depend on what we find, and that will help us go fast, or slow, or to hold.”

Project announcements from the company are expected in December.

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