Nexen Energy announced an expansion of it’s Long Lake South West project Tuesday.
The $400 million investment will provide the project with leading-edge technology that will achieve a 20 per cent reduction in green house gas emissions intensity by 2025.
The steam-assisted gravity drainage (SAGD) production facility expects to achieve first oil in 2020 and will produce 26,000 barrels per day once it reaches full capacity.
Alberta Premier Rachel Notley was in Anzac for the announcement along with Minister of Energy Margaret McCuaig-Boyd.
“We’ve always said that you can’t write climate action out of economic growth, and you can’t write working people out of climate action,” said Notley “Long Lake South West is a prime example of that principle, putting people to work while growing our energy production and reducing emissions at the same time.”
SAGD, which uses one well to inject steam and another to produce water and oil, uses less steam and natural gas which means less energy is needed for production.
The investment includes everything from engineering to startup creating about 250 full-time jobs at the peak of construction.
Two major contracts have already been awarded to Christina River Construction and AKITA Wood Buffalo Drilling.