Hangingstone Expansion deferred to the middle of 2017
Japan Canada Oil Sands Limited (JACOS) announced it will delay the completion of its Hangingstone expansion to mid-2017.
Last August, JACOS announced it was temporarily suspending bitumen production at its existing 6,000 bbl/day demo plant due to unfavourable economics. The demo plant is not connected by pipeline, requiring product to be trucked out of the facility.
The expansion was set to add 20,000 bbl/day of capacity. The company also has signed agreements with Enbridge and Inter Pipeline to provide product and diluent pipeline connections to Hangingstone, improving the facility's overall economics. Capital costs for the expansion have increased by $250 million to $1.5 billion. The company says it will be working towards cost reductions before construction and module fabrication restarts.
JACOS is the Canadian subsidiary of Japan Petroleum Exploration. The Hangingstone Expansion is jointly owned with Nexen Energy (25%).