Imperial Oil (Imperial) recently announced its application with the Alberta Energy Regulator to build a $2-billion solvent-assisted SAGD (SA-SAGD) project near Cold Lake, Alta., reports the Globe and Mail.
The 50,000 bbld SA-SAGD project, dubbed ‘Midzaghe’ by Imperial, marks the first major commercial application of a technology that studies have shown to reduce carbon intensity by 25 percent when compared to existing SAGD projects.
The technique involves mixing solvents such as butane, condensate and other petroleum liquids with steam at the well sites. SA-SAGD has been shown to reduce the amount of energy required to extract bitumen and is also expected to show a reduction in the amount of water required in the SAGD process.
Imperial is assuming “favourable” market conditions and timely regulatory approvals and estimates construction could commence as early as 2019, with first oil in 2022.