Husky SAGD to boost Maidstone

By Geoff Lee

January 24, 2017 8:45 AM

The town of Maidstone is poised to experience growth from Husky Energy’s plans to build the first of three new thermal oil plants in the Lloydminster region at Dee Valley.
The Dee Valley plant, located about 10 km north of Maidstone, is designed to produce about 10,000 barrels per day of heavy oil by steam-assisted gravity drainage (SAGD).
Subject to regulatory approval, site grading is expected to begin this year, followed by facility construction.
“When operating, the plant will create about 30 full-time jobs and we expect about 250 jobs will be created during the construction phase,” said Husky spokesperson, Kim Guttormson.
Sale of oil produced from the facility will be tied into Husky existing sales oil network via pipeline.
Husky will be hosting an open house in Maidstone on Wednesday to speak to residents and answer questions about plans to build a central processing facility for the SADG project at Dee Valley.
The open house will be at the Royal Canadian Legion from 2 to 7 p.m. and is the only scheduled open house for the project.
“I heard they are going to be talking about where it’s going to be located and a few other things like that,” said Maidstone Mayor, Brennan Becotte, late last week.
“It’s positive for our community, we’ve been a tough couple of years, so it’s going to bring positive growth to our community.”
Becotte expects some landowners to attend along with some local town councillors to represent Maidstone if he is unable to be there himself.
“I don’t know if I will be attending that one myself because I have other engagements that day,” he said adding, “it’s going to be good for our community and good for our small towns.”
The Dee Valley project will include the construction of a water intake, which will source water from the North Saskatchewan River and pipe it to the central processing facility to produce steam.
“The new pipeline will run about 10 kilometres from our Pikes Peak South facility to Dee Valley,” said Guttormson.
“This is a relatively small scale project, and upon approval from the Saskatchewan Watershed Authority, the annual allocation of water from the field will not exceed 7,000 cubic metres per day.”
The timing is not yet confirmed for the construction of the two other SADG plants Husky has sanctioned in the area, called Spruce Lake North and Spruce Lake Central.
All three plants are expected to come online in 2020.
Becotte is a principal at two schools in the Northwest School Division and is hoping the Dee Valley project will give a boost to local housing, businesses and students.
“It will be good for kids coming out of school—this will give them more options,” he said, noting some students might take some power engineering courses to work at the plants.
“It will also be good for our local schools and enrolments and housing, and our grocery stores, and our pharmacy—all of those places will benefit from extra people.”
He noted overall, there will be more money spent in town.
Maidstone also derives from economic benefits from being close to Husky’s Rush Lake thermal plant and the Rush Lake 2 plant under development, located northwest of Paynton
“Lots of people who live in Maidstone and Lloydminster work at Rush Lake,” said Becotte.
Husky has made increasing its thermal oil production from its Lloydminster, Sunrise and Tucker Lake SADG facilities, its top operational priority in 2017.
“Dee Valley is part of our plans to provide resilient growth while further lowering our cost base,” said Guttormson.
Each thermal facility that Husky builds in the region is constructed using a very modularized, cookie-cutter like approach, with a cost of about $350 million.
“The project is expected to generate economic benefits to the region, including increased business for local services and increased tax revenue for municipal and provincial governments, as well as employment opportunities,” said Guttormson.
Becotte is predicting and hoping construction at Dee Valley will begin in the spring and bring workers into town looking for accommodations.
“Our trailer parks, we have four seasons camping and we have some other places like that will hopefully, fill up,” said Becotte.
“They’ve been down the last couple of years.”

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