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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Re: CLL's Last Stand-News Release-dk_co
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Jun 10, 2009 04:13AM

dk_co;

I agree with you. While the current Algar plant is rated at 10,000 bbl/d it is expandable to 20,000 bbl/d it has been stated in the past. There will be excess steam available from the co-generation facility that Connacher is building for an additional $20 million dollars at the Algar plant site. The co-generation facility will produce electricity for both the Great Divide and Algar pods and excess electricity generated will be sold into the Alberta power grid. Building a co-generation facility will allow Connacher to reduce its overall electricity costs, it will enable them to sell the excess electricity produced , and the excess steam will fuel a satellite pod or pods between the Great Divide and Algar. I look at the co-generation facility in terms of heating your house. The most expensive way to heat it is by using electric heating as the cost of electricity is more expensive than natural gas or oil when you have to pay someone else to supply you with electricity. So by producing its own electricity it is more economic for Connacher. In addition the co-generation facility provides reliable electriclity and should lessen the possibility of brown outs which can happen on the provincial grid when it becomes overloaded in Northern Alberta with all of the industrial requirements placed on it from upgraders and bitumen production facilities.

The Great Divide as we have seen can be expanded perhaps by installing more ESP's and diverting the excess steam to more well pairs at Pod 1 or by diverting it to a satellite Pod 1A. Also, ESP's can be added at Algar over time to free up excess steam for new wellpairs.


Best Wishes; Scott

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