Canada: expansion project

Fluor Corp. has announced that it has been selected to provide FEED services for a USD 2 billion expansion project for Husky Energy Inc., an integrated energy and energy-related company headquartered in Calgary. Fluor’s FEED work is necessary for Husky to proceed with plans to double the capacity of its heavy oil upgrader – located in Lloydminster, Saskatchewan, Canada – from approximately 80,000bpd to a potential capacity of 150,000bpd. According to officials, the expansion will prepare Husky to process the forecasted growth from its heavy oil operations in the Lloydminster area and from its Tucker Oil Sands Project in Cold Lake, Alberta. The facility processes heavy oil into high quality, low sulphur synthetic crude oil to be used as feedstock for refineries in Canada and USA. The contact’s value to Fluor is USD 88 million. Work will be led by Fluor’s office in Calgary and is expected to be completed in 2007, at which time Husky will proceed with project approvals and then construction. The proposed expansion will bring Husky’s Lloydminster area processing capacity to 175,000bpd including 25,000bpd from its asphalt refinery.
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