- Cenovus Energy (NYSE:CVE) says it may build a diluent recovery unit at its Bruderheim crude-by-rail terminal in Alberta, which would allow it to ship raw bitumen in tank cars and save on condensate costs.
- CEO Brian Ferguson tells Reuters that stripping out condensate could improve margins by $2-$4/bbl, depending on market conditions.
- The CEO notes that building the unit would take 2-3 years and require permits, but surmises that such a plan may fit in with the Canadian government's aim of encouraging innovation and be eligible for incentives.
- CVE earlier reported a Q1 loss and said bitumen realizations from its oil sands projects were hurt by high condensate prices; Financial Post reports that Q1 bitumen prices were so low that CVE would have lost money on every barrel of oil sands crude it produced if not for its hedging program.