Suncor Energy on Wednesday said it is weighing options for replacing around 200,000 barrels per day of raw supply from its oil sands Base Mine, which is set to run out in the mid-2030s.
The mine is a key part of Suncor’s Base Plant operations in northern Alberta, feeding two upgraders that produce roughly 350,000 per day of high value synthetic crude.
The company is working on a regulatory application to extend Base Mine, after being warned last year by the federal government that the project, as first proposed, would not pass an environmental review because emissions were too high.
Suncor is also looking at developing thermal oil sands projects just east of Base Plant, increasing production from its Firebag project nearby and boosting supply from its Fort Hills mine, which is linked to Base Plant via a 40,000 pipeline.
“It’s too early to call in terms of which horse is in the lead race but those options are being worked very hard,” Suncor’s interim chief executive Kris Smith told analysts on a quarterly earnings call.
Smith said Suncor’s focus is on keeping the upgraders full, and the choice would come down to the most economic way to do that. The company expects to land on one of the options over the next 24 months, he added.
Calgary-based Suncor reported a better-than-expected fourth-quarter profit on Tuesday, helped by higher crude prices amid tightened global supply.
The company’s shares were last up 0.8% at C$47.21 on the Toronto Stock Exchange.