Long Lake (oil sands)
The Long Lake oil sands upgrader project is an in situ oil extraction project 40 km (25 mi) southeast of Fort McMurray in the Athabasca oil sands region of Alberta. The project is operated by Nexen, a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC) Limited. Long Lake is an integrated steam-assisted gravity drainage (SAGD) and upgrading operation that uses a proprietary OrCrude technology as well as hydrocracking and gasification to produce Premium Synthetic Crude (PSC) oil. Production capacity at Long Lake is 72,000 barrels per day (11,400 m3/d) of bitumen which, when upgraded, generates approximately 58,500 barrels per day (9,300 m3/d) of crude oil.
|Anzac (Long Lake) Heliport|
|IATA: none – ICAO: none – TC LID: CNZ2|
|Time zone||MST (UTC−07:00)|
|• Summer (DST)||MDT (UTC−06:00)|
|Elevation AMSL||1,612 ft / 491 m|
The first phase of the project received regulatory approval in 2003 and was sanctioned in 2004. Construction at the site began in 2004. Steam injection began in 2007 and the first production was in 2008.
SAGD bitumen operations at Long Lake started in mid-2008 and production of PSC from the upgrader began in 2009. Early in 2009, Nexen acquired an additional 15% interest in the Long Lake project, increasing the company’s ownership level to 65%. Following this acquisition, Nexen became responsible for operating the entire project.
There have been some technical problems and the project has failed to meet production projections. As of early 2011, the site was producing about 30,000 barrels per day (4,800 m3/d) and OPTI was struggling under a heavy debt load and lack of liquidity. On February 1, 2011, OPTI appointed Lazard Freres & Co., a bankruptcy specialist, raising speculation that restructuring or bankruptcy for the company was imminent. In 2011, CNOOC Limited acquired OPTI, which included the 35% non-operated interest in the Long Lake project and joint venture lands.
On February 25, 2013, Nexen was acquired by CNOOC Limited.
The Long Lake upgrader uses SAGD to extract bitumen from the underground oil sands. The process involves using two separate horizontal wells into the reservoir. One well is used to inject steam, which reduces the viscosity of the bitumen. The previously stable bitumen then drains into the second well, which extracts it to the surface.
The Long Lake project uses OPTI's OrCrude process, which refines by-products of the extracted bitumen into usable fuel, which is used to generate steam. This process also generates hydrogen, which fuels the refinement of extracted bitumen through hydrocracking.
The Long Lake (oil sands) upgrader is linked with the Enbridge Athabaska Pipeline (Line 37), a 17-kilometre-long, 12-inch diameter pipe from Long Lake to Cheecham terminal. Enbridge’s 540-kilometre Athabasca (Line 19) from Cheecham to Hardisty, a major part of the network that serves Alberta's oil sands, "can carry up to 570,000 barrels per day of crude from the Athabasca and Cold Lake regions to Hardisty, Alta., a major pipeline hub in eastern Alberta, about 200 kilometres southeast of Edmonton."
2013 Alberta floods
Enbridge Pipelines (Athabasca) Inc., a subsidiary of Enbridge Inc., (TSX:ENB) (NYSE:ENB) reported a pipeline leak site, about 70 kilometres southeast of Fort McMurray, near its Cheetham terminal on June 22, 2013 of approximately 750 barrels of Light Synthetic Crude oil from CNOOC’s Long Lake upgrader SAGD project that spilled into a wetland area near Anzac. Unusually heavy rainfall in the region may have caused "ground movement on the right-of way that may have impacted the pipeline." Operations between Hardisty and Cheecham were restored on June 23 when Enbridge’s Athabasca pipeline (Line 19) was safely restarted.
- "Nexen". Company homepage. Nexen. Retrieved February 17, 2012.
- Canada Flight Supplement. Effective 0901Z 24 July 2014 to 0901Z 18 September 2014
- "Phase One". Company homepage. Nexen. Retrieved October 17, 2010.[dead link]
- "Phase One". Company homepage. Nexen. Retrieved October 17, 2010.
- Cattaneo, Claudia (2 February 2011). "Hard lessons for OPTI in the oil sands". Financial Post. Retrieved 4 February 2011.
- Kiladze, Tim (2 February 2011). "OPTI’s future looking bleak". Globe and Mail. Retrieved 4 February 2011.
- CNOOC Limited Completes Acquisition of Nexen Inc.
- Bitumen Recovery & Extraction
- How Long Lake Works
- Canadian Press (25 June 2013). "Enbridge says spill from Line 37 near Fort McMurray, Alta., is being cleaned up". Edmonton Journal.
- Wynnyk, Ferne (25 June 2013). "Suncor cuts production because of flood-related Enbridge pipeline shutdowns". McMurray. Retrieved 25 June 2013.
- "Line 37 Release". Enbridge Media Centre. 25 June 2013. Retrieved 25 June 2013.