Husky Energy has announced the go-ahead of two new thermal bitumen projects for the Northwest region.
One is the Edam Central project, with a net production capacity of 10,000 barrels per day. This is in the Edam-Vawn area in the vicinity of where their Edam East and Edam West plants are located.
The other project is the Westhazel project, located west of Mervin. According to Mel Duvall, manager of media and issues for Husky, both projects will have a net production capacity of 10,000 barrels per day.
“Once up and running they will create around 30 fulltime jobs and in the construction phase they will create 250 construction jobs,” said Duvall. “Each represents an investment of $350 million, or $700 million total.”
Both projects are slated to be online for the second half of 2021. Duvall notes that Husky has been growing their thermal operations “quite significantly” in the area in particular in recent years.
While these are two new Husky projects Duvall notes four other thermal projects are already under construction and will come online over the next couple of years. Those are Rush Lake 2, Dee Valley, Spruce Lake North and Spruce Lake Central, with the latter two slated for completion by the second half of 2020.
These projects were confirmed as part of Husky’s budget and production guidance outlined at its 2017 Investor Day on Monday.
According to Husky’s report, these are among several projects expected to contribute to a compound annual production growth rate of seven per cent over the next four years, with production rising to 400,000 barrels of oil per day in 2021.
