Diluent Recovery Unit, AB, CA
Our patented diluent recovery unit (“DRU”), announced in December 2019 with partner Gibson Energy Inc., is currently under construction and expected to commence mid-2021. The DRU technology separates the diluent that has been added to the raw bitumen in the production process which meets two important market needs – it returns the recovered diluent for reuse in the Alberta market, reducing delivered costs for diluent, and it creates DRUbit™, a proprietary heavy Canadian crude oil specifically designed for rail transportation. DRUbit™ is crude oil or bitumen that has been returned to a more concentrated, viscous state that creates safety and environmental benefits when transported by rail in Canada and the U.S. DRUbit™ is a market access solution that will satisfy demand for heavy Canadian crude oil on the U.S. Gulf Coast and in other markets at a cost that is economically competitive to the crude oil that is transported by pipeline today. Following separation at the DRU, the DRUbit™ owned by anchor customer ConocoPhillips will be railed by CP and KCS from the existing Hardisty and Hardisty South terminals to a new terminal in Port Arthur, Texas.
Our DRU technology provides a sustainable, long-term solution for shipping Canadian crude oil to the U.S. Gulf Coast. Additionally, it provides safety and environmental benefits in transportation, provides greater take-away capacity, and improved economics across the value chain.