Wednesday, September 11, 2013
Toyo Engineering Wins Canada Oil Sands Order
TOKYO (Nikkei)--Toyo Engineering Corp. (6330) said Wednesday that it has received an order to construct facilities in Canada for extracting petroleum from oil sands.
- An oil sand extraction facility in Canada.
The order, worth 800 million Canadian dollars, or some 78 billion yen, calls for Toyo Engineering to design, procure materials and build the equipment. Completion is targeted in two and a half years.
The facilities, to be situated in Alberta Province, are for a Japan Petroleum Exploration Co. (1662) subsidiary that produces 6,000 to 7,000 barrels a day. The new equipment will be in an adjacent area and be able to produce 20,000 barrels a day. This marks the first time the Japanese firm has won an oil-sands-related project.
Unlike conventional oil, petroleum does not simply come up from the ground in oil sands development. Instead, high pressure steam is injected into underground pipes to separate and recover bitumen from sand. Toyo Engineering will build the aboveground steam-producing and water-processing facilities.
The bitumen recovered at the site is mixed with lighter oils, giving it the fluidity to be piped to destinations such as the U.S. Because oil sand extraction is more expensive than conventional oil production, the product is currently priced higher, but its demand as a fuel for ships and power plants is expected to increase.
Toyo Engineering purchased a Canadian engineering company in 2010, thereby acquiring the name recognition and technology to win oil sands orders. It hopes this contract will enable it to speed up the development of its Canadian business.
(The Nikkei, Sept. 12 morning edition)