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Bullboard - Stock Discussion Forum Cenovus Energy Inc T.CVE

Alternate Symbol(s):  CVE | CVE.WS | T.CVE.WT | T.CVE.PR.A | CNVEF | T.CVE.PR.B | T.CVE.PR.C | T.CVE.PR.E | T.CVE.PR.G

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The Company's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore.... see more

TSX:CVE - Post Discussion

Cenovus Energy Inc > IS THIS HOW CVE PLANS TO REDUCE CONDY COSTS?
View:
Post by Quintessential1 on Dec 18, 2022 3:46pm

IS THIS HOW CVE PLANS TO REDUCE CONDY COSTS?

Cenovus Energy Inc. is investigating building a recovery unit at its rail terminal near Edmonton which would cost between $800 million and $1 billion, CEO Alex Pourbaix told The Canadian Press in a recent interview.

It would be capable of processing up to 180,000 barrels per day of diluted bitumen, recovering about 60,000 barrels per day of diluent to be returned to Conovus’s northern Alberta oilsands projects for re-use, he said.

“Right now, about one-third by volume of every tank car of oil we send is taken up by diluent and that diluent actually has a cost to us, it has no value. If we could… move pure bitumen, it effectively reduces our freight costs by over a third, so it makes rail movement of oil much more economic,” he said.

“On top of that, the straight bitumen generally is a much more attractive feedstock for our refining customers at the other end of the line. We believe there may even be a premium value associated to stripping the diluent out.”

https://globalnews.ca/news/5778115/oilsands-crude-rail-diluent/

It seems like a win/win but I would rather they buy ARX.

GLTA

Comment by David01montreal on Dec 19, 2022 9:35am
This post has been removed in accordance with Community Policy
Comment by Fuzman5902 on Dec 19, 2022 11:22am
Old news from 2019 https://www.jwnenergy.com/article/2019/12/17/cenovus-applies-190000-bbld-diluent-recovery-unit-/
Comment by David01montreal on Dec 19, 2022 12:10pm
This post has been removed in accordance with Community Policy
Comment by Quintessential1 on Dec 20, 2022 8:21am
"The company told the Alberta Energy Regulator its proposed DRU plant has an anticipated life of 40 years, with a projected start in the fourth quarter of 2023." I am not sure if it ever got approval or sanctioned but it is too bad based on this report it could be lucrative  considering the price of condy. https://www.oilsandsmagazine.com/news/2021/8/6/albertas-first-stand-alone ...more  
Comment by David01montreal on Dec 20, 2022 10:14am
This post has been removed in accordance with Community Policy
Comment by Margin321 on Dec 20, 2022 11:30am
Condensate is so expensive only because it is needed to ship oil sands output by pipeline. It has great price in western canada and is imported from US to capture that premium. So if they reduce their need for condensate by reusing the amount needed just move bitumen it to the rail loading site, won't that change the demand/supply equation and pootentially lower the price. Or is the amount the ...more  
Comment by Quintessential1 on Dec 21, 2022 7:43am
Well I am going by the comment that AP put into the last production report stating a need to manage condy costs.  If the plant just had the effect of lowering the price of condy it would be worth it IMO.  I doubt it would lower the costs much in the overall tar-sands market as CVE only uses a small volume of the overall total. But according to the articles I posted it does much more ...more  
Comment by Margin321 on Dec 23, 2022 7:34am
Thanks, good post, helpful. 
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