Update PetroCan Revamp Edmonton Refinery (& Coker)

[Charles RandallParticipant]

Wed, August 6, 2008
Petro-Can to revamp Refinery
 
Motorists wont feel pump pinch as company converts facility to process oilsands crude
By Markus Ermisch, SUN MEDIA
Motorists won’t be left with empty tanks as Petro-Canada is closing parts of its Edmonton refinery over the next two months as part of a planned conversion of the facility. “We’re operating at a fairly limited capacity,” said Petro-Canada spokeswoman Kelli Stevens.
“When you have a turnaround booked, you start making arrangements for supply from other areas.”  The refinery, one of two refineries Petro-Canada operates in Canada, has a capacity of 135,000 barrels per day.
Earlier this week, the refinery shut down its catalytic cracker for repair work that’s expected to last about two weeks. The remaining work will take about two months.  Stevens said the company expects to meet the shortfall in supply from a combination of inventory stock and trades.
Motorists, she said, shouldn’t be left stranded at the pump, as preparations for the shutdown were made well in advance.  The shutdown is part of a plan to convert the refinery from one that uses conventional and synthetic crude as inputs to one that exclusively uses the cheaper heavier oilsands-based crude.
The conversion is being carried out to boost Petro-Canada’s cash-flow position. Analysts use cash flow to gauge a company’s ability to invest in projects.  Although the conversion is expected to be completed on schedule this fall, it is plagued by significant cost overruns.
Petro-Canada CEO Ron Brenneman last week, revealed the company was forced to push the price tag for the conversion to $2.5 billion from $2.2 billion.  “This increase is due to additional work and rework, combined with lower labour productivity,” he said.

[Charles RandallParticipant]

Here is update on the PetroCan Edmonton Refinery & Coker revamp/expansion to switch from blend of conventional & synthetic crude to exclusively use heavier oilsands-based upgraded crudes before the end of 2008. The county surrounding Edmonton will soon be home to over 5 OilSands Upgraders and will provide the source for PetroCan increase use at both of its refineries. 
 
But, once this conversion is complete, the Rio Tinto/Alcan Edmonton calciner (supplies coke to Kitimat smelter) won’t have any green coke to make calcined anode or recarburizer coke (and hauling imported green coke supplies in and calcined product out over long CN railroad distances wouldnt make economic sense) and yet another source of both green and calcined anode coke will likely disappear with this conversion ….. as they are across the world.
 
Regards

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