Cenovus Energy is planning a major expansion at its Spruce Lake thermal oil operation in the RM of Mervin, approximately 50 kilometres northeast of Lloydminster, the company announced at an open house on Aug. 20.
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The project will construct a new stand-alone facility to support the company’s first commercial use of diluent solvent-aided process technology. The expansion is expected to increase production by approximately 10,000 barrels of oil per day while reducing greenhouse gas emissions intensity by about 30 per cent per barrel produced, according to company materials.
The Spruce Lake operation currently produces approximately 28,000 barrels of oil per day and employs 25 full-time staff.
How the Technology Works
The DilSAP project will optimize production by injecting a light hydrocarbon solvent, known as condensate, along with steam into the reservoir. The solvent helps mobilize heavy oil more efficiently, allowing the company to recover more crude while using less steam and water.
Cenovus recently hosted a Spruce Lake open house to introduce the emission-reducing technology to area residents and stakeholders.
The new facility will separate and recover diluent from production fluids before reinjecting it into the reservoir with steam. The company says the process reduces the amount of new diluent required and improves overall operating efficiency.
What’s Being Built
The expansion includes construction of a new DilSAP facility located roughly 3.2 kilometres east of the existing Spruce Lake Central operation.
The development will also include a 3.5-kilometre underground pipeline supplying diluent from Spruce Lake Central, above-ground pipelines carrying steam, fuel gas and production fluids, tanks, vessels, compressors and pumps used in the recovery process and a flare stack for operational safety. Minor modifications to the existing Spruce Lake Central and Spruce Lake North facilities are also planned.
Construction is expected to begin later this year and continue through the first quarter of 2027, with startup anticipated in late 2027.
First Commercial Deployment
While Cenovus has long relied on steam-assisted gravity drainage technology to produce heavy oil, the Spruce Lake expansion marks the company’s first commercial deployment of DilSAP.
The expansion comes as Cenovus continues operations at other facilities in the region following earlier operational incidents at the Rush Lake site.
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