Heavy lifting begins as Suncor starts refurbishing decades-old upgrader components
CALGARY – Oilsands giant Suncor Energy Inc. has begun a three-month outage at one of its upgraders so it can begin to replace enormous components first installed almost six decades ago.
The Calgary-based company is in the midst of a multi-year project to replace eight original coke drums dating back to 1967 at its Base Mine site north of Fort McMurray, Alta., with the goal of extending the upgrader's life by 30 years.
The drums, weighing 270 tonnes and standing nearly 30 metres, are used in the upgrading process, where tarry oilsands bitumen is converted into a lighter crude that can then be refined into fuel. Suncor's base plant and upgrader in the oil sands in Fort McMurray Alta, on Monday June 13, 2017. THE CANADIAN PRESS/Jason Franson
In a website post last year when one of the drums was being transported from Edmonton to the mine, Suncor said the load took up the entire width of the road, including the shoulder lanes.
The outage at the upgrader — one of two at the mine — began on May 1 and is expected to last 91 days.
Shelley Powell, the Suncor senior vice-president in charge of major capital projects, says the first major crane lift of equipment was successfully completed over the weekend.
The project is using one of the biggest cranes in the world, the Mammoet PTC210DS.
'We were really well prepared. We have all of the pre-work done, and that included actually doing some early planning and preparatory lifts,' Powell told Suncor's first-quarter conference call Wednesday.
'So we practised some of this stuff ahead of time to make sure we had the equipment in the right spot, we had people trained and ready to go, and everybody knew what their role was going to be.'
Powell added that some of the operators involved in the project have experience doing similar heavy-lifting jobs elsewhere in the world.
CEO Rich Kruger said collaboration between different teams is key to pulling off a project of this scale.
'We have to be seamless in our execution and our handoffs,' he told investors. 'We won't declare victory until we're done, but we feel quite good about our level of preparation and planning.'
Desjardins Securities analyst Chris McCulloch said in a note that much is riding on the coke drum replacement going according to plan.
'Maintaining operational momentum will be pivotal for Suncor entering the heaviest stretch of scheduled maintenance this year,' he wrote.
'In our view, success of the Base Plant and other planned turnarounds will materially impact the company's ability to achieve its 2025 production guidance and (capital expenditure) targets, which we maintain have been conservatively set.'
Late Tuesday, Suncor said its production for the first three months of 2025 was 853,000 barrels of oil per day, refining throughput was 483,000 barrels per day and refined product sales were 605,000 barrels per day.
All three measures set new first-quarter records for the company.
Net earnings for the first three months of 2025 were $1.69 billion, up from $1.61 billion during the same 2024 period.
That amounted to $1.36 per share versus $1.25 per share.
Winnipeg Free Press | Newsletter
Winnipeg Jets Game Days
On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Sign up for The Warm-Up
Gross revenues were $13.33 billion, compared to $13.31 billion a year earlier.
Adjusted operating earnings, a measure Suncor says provides a better comparison between quarters, were $1.63 billion, down from $1.82 billion, which it says was due to lower crude oil sales.
Chief financial officer Kris Smith said Suncor is positioned well to weather a West Texas Intermediate crude price of US$60 per barrel, the level it's been hovering around in recent weeks.
This report by The Canadian Press was first published May 7, 2025.
Companies in this story: (TSX:SU)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
31 minutes ago
- Winnipeg Free Press
What to know about inspections of Iran's nuclear program by the IAEA ahead of a key board vote
VIENNA (AP) — Iran's nuclear program remains a top focus for inspectors from the International Atomic Energy Agency, particularly as any possible deal between Tehran and the United States over the program would likely rely on the agency long known as the United Nations' nuclear watchdog. This week, Western nations will push for a measure at the IAEA's Board of Governors censuring Iran over its noncompliance with inspectors, pushing the matter before the U.N. Security Council. Barring any deal with Washington, Iran then could face what's known as 'snapback' — the reimposition of all U.N. sanctions on it originally lifted by Tehran's 2015 nuclear deal with world powers, if one of its Western parties declares the Islamic Republic is out of compliance with it. All this sets the stage for a renewed confrontation with Iran as the Mideast remains inflamed by Israel's war on Hamas in the Gaza Strip. And the IAEA's work in any case will make the Vienna-based agency a key player. Here's more to know about the IAEA, its inspections of Iran and the deals — and dangers — at play. Atoms for peace The IAEA was created in 1957. The idea for it grew out of a 1953 speech given by U.S. President Dwight D. Eisenhower at the U.N., in which he urged the creation of an agency to monitor the world's nuclear stockpiles to ensure that 'the miraculous inventiveness of man shall not be dedicated to his death, but consecrated to his life.' Broadly speaking, the agency verifies the reported stockpiles of member nations. Those nations are divided into three categories. The vast majority are nations with so-called 'comprehensive safeguards agreements' with the IAEA, states without nuclear weapons that allow IAE monitoring over all nuclear material and activities. Then there's the 'voluntary offer agreements' with the world's original nuclear weapons states — China, France, Russia, the United Kingdom and the U.S. — typically for civilian sites. Finally, the IAEA has 'item-specific agreements' with India, Israel and Pakistan — nuclear-armed countries that haven't signed the Nuclear Nonproliferation Treaty. That treaty has countries agree not to build or obtain nuclear weapons. North Korea, which is also nuclear armed, said it has withdrawn from the treaty, though that's disputed by some experts. The collapse of Iran's 2015 nuclear deal Iran's 2015 nuclear deal with world powers, negotiated under then-President Barack Obama, allowed Iran to enrich uranium to 3.67% — enough to fuel a nuclear power plant but far below the threshold of 90% needed for weapons-grade uranium. It also drastically reduced Iran's stockpile of uranium, limited its use of centrifuges and relied on the IAEA to oversee Tehran's compliance through additional oversight. But President Donald Trump in his first term in 2018 unilaterally withdrew America from the accord, insisting it wasn't tough enough and didn't address Iran's missile program or its support for militant groups in the wider Mideast. That set in motion years of tensions, including attacks at sea and on land. Iran now enriches up to 60%, a short, technical step away from weapons-grade levels. It also has enough of a stockpile to build multiple nuclear bombs, should it choose to do so. Iran has long insisted its nuclear program is for peaceful purposes, but the IAEA, Western intelligence agencies and others say Tehran had an organized weapons program up until 2003. IAEA inspections and Iran Under the 2015 deal, Iran agreed to allow the IAEA even greater access to its nuclear program. That included permanently installing cameras and sensors at nuclear sites. Those cameras, inside of metal housings sprayed with a special blue paint that shows any attempt to tamper with it, took still images of sensitive sites. Other devices, known as online enrichment monitors, measured the uranium enrichment level at Iran's Natanz nuclear facility. The IAEA also regularly sent inspectors into Iranian sites to conduct surveys, sometimes collecting environmental samples with cotton clothes and swabs that would be tested at IAEA labs back in Austria. Others monitor Iranian sites via satellite images. In the years since Trump's 2018 decision, Iran has limited IAEA inspections and stopped the agency from accessing camera footage. It's also removed cameras. At one point, Iran accused an IAEA inspector of testing positive for explosive nitrates, something the agency disputed. The IAEA has engaged in years of negotiations with Iran to restore full access for its inspectors. While Tehran hasn't granted that, it also hasn't entirely thrown inspectors out. Analysts view this as part of Iran's wider strategy to use its nuclear program as a bargaining chip with the West. What happens next Iran and the U.S. have gone through five rounds of negotiations over a possible deal, with talks mediated by the sultanate of Oman. Iran appears poised to reject an American proposal over a deal this week, potentially as soon as Tuesday. Without a deal with the U.S., Iran's long-ailing economy could enter a freefall that could worsen the simmering unrest at home. Israel or the U.S. might carry out long-threatened airstrikes targeting Iranian nuclear facilities. Experts fear Tehran in response could decide to fully end its cooperation with the IAEA, abandon the the Nuclear Nonproliferation Treaty and rush toward a bomb. If a deal is reached — or at least a tentative understanding between the two sides — that likely will take the pressure off for an immediate military strike by the U.S. Gulf Arab states, which opposed Obama's negotiations with Iran in 2015, now welcome the talks under Trump. Any agreement would require the IAEA's inspectors to verify Iran's compliance. But Israel, which has struck at Iranian-backed militants across the region, remains a wildcard on what it could do. Last year, it carried out its first military airstrikes on Iran — and has warned it is willing to take action alone to target Tehran's program, like it has in the past in Iraq in 1981 or Syria in 2007. ___ Associated Press writer Stephanie Liechtenstein contributed to this report. ___ The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation. The AP is solely responsible for all content. ___ Additional AP coverage of the nuclear landscape:
Toronto Star
44 minutes ago
- Toronto Star
Developers unveil plans for aviation-themed playground on former Downsview Airport lands
A Toronto-based developer unveiled plans to convert a 100-foot decommissioned airplane into a playground on former Downsview Airport lands on Monday. The deconstructed plane, or 'playscape,' is part of a larger project including a public plaza at YZD, the community planned for the redevelopment of North York's former 370-acre airport.
CTV News
4 hours ago
- CTV News
Canada's energy future among top discussions at Calgary's Global Energy Show
The Global Energy Show kicks off at the BMO Centre in Calgary on Tuesday, and it comes amid ongoing national discussions about Canada's energy future. The Global Energy Show kicks off at the BMO Centre in Calgary on Tuesday, and it comes amid ongoing national discussions about Canada's energy future. The Global Energy Show runs June 10-12 at the BMO Centre in Calgary. It's Canada's largest B2B energy event, with over 500 exhibitors and more than 30,000 people expected to attend. 'The talk that's continuing to increase about major infrastructure projects—that's what's really driving more exhibitors and more delegates. Our registration is up by more than one-third compared to the 2024 event,' said Nick Samain on behalf of the Global Energy Show. Premier Danielle Smith will speak at the conference on Wednesday. Ahead of federal approval, she's working to convince B.C. Premier David Eby to allow a new pipeline to transport oil from Alberta to the coast. 'I think it's very clear from our perspective that no other project would provide as large of a positive impact to the Canadian GDP or, frankly, Indigenous economic reconciliation than this particular project,' said Brian Jean, Alberta's minister of energy and minerals. The Global Energy Show runs June 10-12 at the BMO Centre in Calgary. The Global Energy Show runs June 10-12 at the BMO Centre in Calgary. The conference component will host discussions on energy security, climate responsibility and global demand challenges. 'There's change in the air. There's a change in opportunity. Donald Trump has taught us we need to think of Canada first and more of a Team Canada approach on our energy,' said Jean. On Tuesday, OPEC Secretary General Haitham Al Ghais will make the keynote address at 10 a.m.
