Clogged pipeline delays restart of Suncor's MacKay River facility -sources

By Liz Hampton
June 15 (Reuters) - An Enbridge Inc pipeline connected to
Suncor Energy Inc's MacKay River oil sands facility near Fort
McMurray, Alberta, has clogged after heavy oil cooled in the
system, prolonging a shutdown of the site, three sources
familiar with the matter said on Wednesday.
The pipeline clogged after last month's massive Alberta
wildfire shut more than 1 million barrels a day of oil
production and forced oil sands producers to shut facilities,
including thermal projects that require ongoing heat to operate
effectively.
It was not immediately clear how long repairs would take,
but the sources estimated about 20 days. One source close to the
matter said the roughly 32-km (20-mile) line would be excavated
every 2 km (1.2 miles) and injected with diesel.
It represents a setback for Suncor SU.TO , the largest
crude producer in Canada, as it had said last week it expected
all its operations in the area to be at normal rates by the end
of June. MacKay River has a capacity of 38,000 barrels per day,
so it is the smallest of three main properties in the Fort
McMurray region, where the fire was concentrated.
Bitumen is the primary product extracted from Alberta's vast
oil sands, but its asphalt-like consistency means it will not
flow through pipes by itself. Rather, it needs to be heated or
diluted with lighter hydrocarbons to flow. This pipeline was
insulated to pump heated bitumen.
A representative for Enbridge ENB.TO said the company
could not provide information because the pipeline was a
client-specific line. Suncor said it did not provide real-time
status updates or "this level of granular detail on our
operations."
"It sounds like they are running into problems along the
road," said FirstEnergy (NYSE:FE) analyst Martin King, referring to oil
sands producers in general.
King could not comment specifically on Enbridge and Suncor,
but added: "The bitumen is cooling in the pipes as the flow has
slowed or stopped, so the bitumen has solidified inside the
pipes. They will have to open up the pipe and reheat it to get
it flowing."
Suncor has told employees the wildfire will cost the company
nearly C$1 billion ($778 million).