$2 billion Japan Canada Oil Sands expansion ramps up near Fort McMurray

Premier Rachel Notley cuts the ribbon to mark the official opening of the Japan Canada Oil Sands Ltd. (JACOS) Hangingstone project near Fort McMurray.

Japan Canada Oil Sands first Japanese-owned company to invest in the oil sands, starting in 1978

Premier Rachel Notley, representatives from Japan and local officials marked the opening of the Japan Canada Oil Sands Ltd. Hangingstone project near Fort McMurray, according to a press release.

This Steam Assisted Gravity Drainage (SAGD) project is the culmination of the largest investment made in Alberta by the company in its 40-year history in the province.

It is also the largest global investment by Japan Canada Oil Sands’ parent company, Tokyo-based Japan Petroleum Exploration Company.

Follow Teo on LinkedIn and Facebook!

“The startup of this project is meaningful for Alberta as it is being sanctioned, with confidence, even in the current challenging economic conditions. The attendance of the Premier is very encouraging for JACOS and its partner, Nexen,” said Satoshi Abe, president, Japan Canada Oil Sands Ltd.

Construction of the Hangingstone project supported roughly 400 direct and indirect jobs and the facility currently employs 190 people. The company says that over its decades of work in Alberta, Japan Canada Oil Sands has employed hundreds of Albertans.

“It’s also encouraging for other international investors who are seeking opportunities in the vast oil sands resources and want to be assured of the Alberta government’s support,” said Abe.

The Hangingstone project is currently producing about 1,000 b/d with full production expected to reach approximately 20,000 b/d by the middle of next year.

“Good jobs for Albertans, billions of dollars in new investment and a growing economy – that’s what this expansion project means. I want to thank JACOS for their work here and underscore that it’s never been more important for us to get new pipelines built, which will help diversify our markets and further strengthen our ties with Asia,” said Rachel Notley, Alberta Premier.

Japan Canada Oil Sands was the first Japanese-owned company to work and invest in the oil sands, starting in 1978.

Energy Minister Margaret McCuaig-Boyd met with Japan Canada Oil Sands’ parent company in Tokyo on Sept. 7 as part of a three-country mission through Asia, promoting investment in Alberta’s energy sector.

In her discussions with company executives and Asian investors, Minister McCuaig-Boyd stressed Alberta’s support for Trans Mountain pipeline expansion, providing access for Alberta’s resources to Asian markets.