Suncor plans to build new oil sands project in Canada

Suncor Energy (TSX, NYSE:SU), Canada's largest oil and gas producer, is hoping to start building a new oil sands project later in Alberta this year, which would have an estimated production of up 160,000 barrels a day.

The Lewis project would be located about 25 km northeast of Fort McMurray and could eventually produce up to 160,000 barrels a day.

While the firm hasn’t officially sanctioned the Lewis project, located about 25 km northeast of Fort McMurray, it expects construction to begin in 2024, according to information posted in Suncor’s website.

The Calgary-based company also said it would consider using new technologies, including vaporized solvents and electromagnetic heating to replace steam, to produce the heavy bitumen crude through wells at Lewis. This would allow the company to use reduced amounts of energy and water.

The announcement comes as Canadians have been asked to weigh on another potential project, belonging to Teck Resources (TSX:TECK.A and TECK.B)( NYSE: TECK). Canada's largest diversified miner is proposing to build its Frontier mine about 110 kilometres north of Fort McMurray, in Alberta.

Suncor plans to build new oil sands project in Canada

Courtesy of Suncor.

Alberta’s oil sands hold the world’s third-largest crude reserves, but they are also among the most expensive operations due to their remote location and energy-intensive production methods.