Lloydminster Upgrader expected to return to full rate by mid-January, says Cenovus

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

Cenovus Lloydminster Upgrader. Photo by Brian Zinchuk

CALGARY — Cenovus Energy Inc. provided an update on Jan. 8 regarding its downstream operations following recent extreme winter storms and severe cold temperatures at the company’s U.S. and Canadian refining operations, coupled with unplanned operational challenges and third-party pipeline outages, which impacted refinery throughput and operational availability.

Cenovus said its priority remains the safety of its people and the reliability and integrity of its operations.

The Lloydminster Refinery has continued to run well through December and into January. However, the company’s refineries in the U.S. and the Lloydminster Upgrader experienced various degrees of unplanned operational issues, weather-related impacts and third-party pipeline outages. As a result, downstream throughput was significantly reduced in December. Cenovus now expects Q4 2022 downstream throughput in the ranges set out below.

It’s estimated Q4 2022 throughput for its “Canadian manufacturing” is 90-95,000 barrels per day, while “U.S. manufacturing” is 370-380,000 barrels per day.

The Lima Refinery is now operating at full rates. The Lloydminster Upgrader and Borger Refinery are each expected to return to full rates by about the middle of January. The Wood River Refinery, currently operating at approximately 65 per cent capacity, is expected to continue to increase rates through the first quarter. As a result of these impacts, Q1 2023 downstream refinery throughput will be lower than anticipated, the company said in a release.

If necessary, Cenovus will provide an update to its 2023 corporate guidance in February when its 2022 fourth-quarter and full-year results are announced.

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