Husky’s heavy oil upgrader at Lloydminster, Saskatchewan is an integral component of its midstream business. By converting heavy oil to a high quality, low sulphur synthetic oil, the heavy oil upgrader plays a key role in minimizing the price volatility associated with heavy oil price differentials (the discount paid for Canadian heavy oil against benchmark West Texas Intermediate crude oil).
The feedstock for the Upgrader comes from heavy oil deposits in northeastern Alberta and western Saskatchewan. This heavy oil is mixed with light oil (condensate or naphtha) to reduce the viscosity, allowing it to flow easily through pipelines to the Upgrader for further processing. Additional feedstock will come from Husky’s Tucker Oils Sands Project, near Cold Lake, Alberta after it is commissioned.
The Upgrader processes this feedstock into synthetic crude oil which is used in the production of gasoline and diesel fuels in conventional refineries in Canada and the United States. The process also produces two by-products; sulphur and petroleum coke. Sulphur is sold in domestic and international markets primarily for fertilizer. Fuel grade petroleum coke used to fuel boilers and cement kilns is sold to customers in North America and offshore.
Lloydminster Upgrader Fact Sheet
Lloydminster Refinery Brochure
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