Notley lauds start of Nexen’s $400-million Long Lake expansion

FORT McMURRAY A day after attending the ribbon-cutting ceremony for the Fort Hills oilsands project, Premier Rachel Notley praised the start of a $400-million expansion at Nexen’s Long Lake project as another positive sign for the oilsands.

At a media event held at the oilsands site south of Fort McMurray, Notley — along with Energy Minister Marg McCuaig-Boyd — said the Long Lake South West Project shows that Alberta’s energy industry could be developed responsibly.

“This investment will also help keep our economic recovery going strong and it sends a message about Alberta to our fellow Canadians and to the rest of the world,” said Notley Tuesday. “Oil and gas remain a crucial part of the world that we live in, and when that oil and gas comes from Alberta, it’s produced to the highest environmental standards.”

The project is scheduled to be completed in 2020. First announced in June, the project will use 32 well pairs over three pads to produce 26,000 barrels per day. It will use less steam and natural gas. It will support 250 jobs during construction and bring in an estimated $200 million in provincial royalties and property taxes.

The cost of the project will include engineering, procurement, drilling, completions, fabrication, construction, commissioning and startup.

About 90 per cent of the value will be spent in Alberta, said Quinn Wilson, CEO of China National Offshore Oil Corp. North America.

The project is also said to have performance improvements relating to greenhouse gas by generating fewer emissions per barrel. It is projected Long Lake will reduce greenhouse gas emission by 20 per cent by 2025.

“We can develop our energy resources safely and responsibly and sustainably and we can do that while we create good jobs for working people all across Fort McMurray, Alberta and Canada,” said Notley.

McCuaig-Boyd said she is proud to see responsible energy development being done in the oilsands.

“Growing our economy and protecting the environment are things that do go hand in hand,” she said.

Notley also said the province would continue fighting for the Trans Mountain pipeline expansion, criticizing the recent court decision that ground construction of the project to a halt.

“We’re going to keep fighting. Fighting for our resources. Fighting to expand our markets beyond the United States,” she said.