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Imperial Oil Ltd seeks approval for new $2-billion oilsands project near Cold Lake

Imperial Oil is seeking approval for a new $2-billion oilsands project on its Cold Lake lease area in northeastern Alberta.

CALGARY C Imperial Oil Ltd. has revealed plans for a new $2-billion oilsands plant at a time its competitors have cancelled or deferred new projects to outlive the oil price collapse.

Imperial, among the largest oil and gas companies in Canada, announced Friday it had filed a credit card applicatoin using the Alberta Energy Regulator to construct a 50,000 barrel each day oilsands facility, which would extract oil using a new technique the organization says would reduce greenhouse gas emissions by 25 per cent compared with existing projects.

If built, the new project C which Imperial previously dubbed Midzaghe, the Dene word for owl C uses an adaptation of steam-assisted gravity drainage (SAGD) technology that uses less water and less energy to produce oil.

Imperial spokesperson Lisa Schmidt said the company continues to be piloting this “solvent-assisted” SAGD in the field, and recently amended its application for another thermal oilsands project to make use of this solvent-based technology.

Solvents C like butane and propane C reduce the need for pressure and lower the need for high-temperatures in SAGD extraction, allowing more oil and gas to flow towards the surface while using less energy.

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