QGI study identifies huge revenue opportunities from bitumen upgrader projects

The Greater Edmonton Area Bitumen Upgrader Supply Chain Report was prepared by QGI Consulting for Edmonton Economic Development Corp. (EEDC) and Alberta Finance and Enterprise (AFE).  The QGI report found that Alberta and Canadian companies could supply a much larger share of the equipment and services needed by more than $100 billion worth of bitumen upgrader projects that are currently being built or planned for Greater Edmonton.

According to the report, there are significant opportunities for local industries to replace imported equipment and services to be used in the upgraders. These opportunities include:

Pumps and compressors:

Bitumen upgraders planned for the Edmonton area will need $3.2 billion to $5.6 billion worth of pumps and compressors, or approximately two to four times the annual value of pumps and compressors currently produced each year in Alberta.

Metal valves:

These projects will require up to $1 billion in metal valves, or up to three times Alberta’s annual production.

Maintenance:

Upgrader projects will require $376 - $658 million worth of capital maintenance per year over an approximate 40-year life cycle — an important long-term opportunity for Alberta companies.


Environmental technologies:

Upgrader developers will be substantial purchasers of environmental services and technology. Each project will require extensive environmental impact assessments, as well as monitoring, controls and equipment to reduce their impact on the environment.


“This latest study affirms the strategic areas of focus for local industries to seize significant revenue opportunities from new upgrader projects,” says Ron Gilbertson, president and CEO of Edmonton Economic Development Corp.  “EEDC and our project partners at AFE hope the information in this report will be invaluable for local companies providing upgrader services, as well as other companies across Canada and elsewhere who are interested in entering the Greater Edmonton marketplace.”