Construction of TrueNorth Energy Corp.’s $3.3-billion Fort Hills oilsands project near Fort McMurray will be delayed, despite the project winning approval from the Alberta Energy and Utilities Board (EUB).
UTS Energy Corp. of Calgary, TrueNorth’s partner in the project, says it has been notified by Kansas-based Flint Hills Resources, TrueNorth’s parent company, that capital spending will be “significantly reduced” in 2003.
“Accordingly, UTS Energy considers it unlikely that construction of the Fort Hills Project will proceed in 2003 as originally planned and that the proposed commencement of production in 2005 will be delayed,” UTS Energy said in a statement issued Friday.
The company didn’t say how long the delay would be. UTS Energy, which owns 22 per cent of the Fort Hills project, said Flint Hills indicated it doesn’t appear it will be able “at this time” to partner with a third party on the project – a key condition for Flint Hills proceeding with development.
Dennis Sharp, CEO of UTS Energy, said his company “remains committed to the Fort Hills Project and intends to become increasingly proactive in ensuring that the delays we face are minimized where possible and managed in the best interests of our shareholders.”
The EUB, in a decision last month, concluded the oilsands development is in the public interest. Fort Hills was originally scheduled to start producing 95,000 barrels of bitumen a day in 2005.
