March 24, 2010

Oilsands Construction

Construction of Fort McMurray, Alberta facility on track for April completion

Richard Gilbert

staff writer

The construction of Connacher Oil and Gas Ltd.’s Algar oilsands facility is progressing as planned and is on track for completion in April.

“When we restarted the project back in July, the civil work including the plant site building, roads and well pads were complete,” said Grant Ukrainetz, Connacher Oil vp of corporate development.

“A lot of large equipment had been fabricated off site and was in storage. So all we had to do was take the equipment modules out of storage, move them on site and start bolting them together.”

A recent update said all the foundation piles on the facility have been installed and all concrete slabs have been poured and cured.

The major equipment and the rack modules have been set at the site and tank mechanical work has been completed.

Building fabrication is 95 percent complete and 90 percent of the major equipment has been set in place at the three well pads.

Surface emulsion and steam pipelines have been fabricated.

“We had about $200 million left to spend in July and we are a month from completion,” said Ukrainetz.

“The key thing left is the electricals, everything else is in place and just needs to be tied together.”

Activities such as bolting up of the remaining spools, electrical work and installation of instrumentation and insulation of the entire project are all proceeding.

Algar, which is expected to go through commissioning in mid-April 2010, is Connacher’s second oilsands project.

Connacher’s first production from oilsands operations was the Great Divide Pod One SAGD plant.

The construction of the second plant will replicate the process used in the first.

The new plant will be located about 9.5 kilometres east of the first plant and is 80 kilometres south of Fort McMurray on Highway 63.

http://www.journalofcommerce.com/article/id38100