Husky Energy is planning major investments in the Lloydminster area.
In their end of year conference call, the company indicated that a range of projects are in the works for the local area.
First off, three new thermal projects have been sanctioned in the mid-term, with a total designed capacity of 30,000 barrels per day. The plants are going to be placed at Dee Valley, Spruce Lake North, and Spruce Lake Central. Pending regulatory approval, the first production on all three facilities is expected to start in 2020.
Development on a 10,000 barrel per day Rush Lake 2 thermal project is continuing, with the first production scheduled for 2019. The engineering work on the expansion of asphalt capacity in Lloydminster is also continuing, with the planned production levels of 60,000 barrels per day by 2021. The asphalt plant expansion will be considered for sanctioning next year.
In the near-term, Husky is projecting a rise of 125,000 barrels per day from the Edam East, Vawn, Edam West, and Tucker thermal projects, as well as the Sunrise Energy Project. The Tucker production is expected to rise towards 30,000 barrels per day in 2018, and the Sunrise production is expected to rise to between 40,000 to 44,000 barrels per day.
Two turnarounds are also scheduled in the Lloydminster area. The asphalt refinery will be worked on in the second quarter, for four weeks, and the Lloydminster Upgrader will undergo a seven-week turnaround, also in the second quarter.