SK E&C has solely won a deal for the largest oil sands plant construction project worldwide in Canada.
Sk E&C announced on August 25 the conclusion of the official contract for Fort Hills Oil Sands Project, which is worth US$2.55 billion, on August 22. Fort Hills Energy is the partnership company in which Suncor Energy, the biggest petroleum producing company in Canada, Teck Resources, and Total E&P Canada of France have jointly invested.
This project is to build the extraction facility to produce 180,000 barrels of bitumen per day out of oil sands buried in Fort Hills located in Alberta, Western Canada, one of the largest oil sands reserves in the world. SK E&C, which has already done the Front-End Engineering Design (FEED), is the main contractor, and already started construction early last month. The plant is expected to be completed by late 2017, about 40 months from now.
Especially, Fort Hills Project is the largest deal that Korean construction companies have won in the oil-sand-rich country Canada, and the very first oil plant construction to apply the bitumen extraction technologies using high temperature paraffin. SK E&C broke the conventional bitumen extraction method to use naphtha, but introduced new technologies to use high temperature paraffin in order to radically increase the marketability and purity of bitumen.
Major facilities of this construction will be manufactured in forms of module components and transported to Canada over vessels. These models will be assembled and built by local construction companies in Canada.