'Why I'm hiking capex by 21%': Cenovus Energy CEO
Cenovus Energy Inc. anticipates that weather conditions will weigh on its downstream refinery output in the first quarter of 2023.
The Calgary-based company already reduced its fourth-quarter 2022 expectations for downstream throughput, based on extreme weather conditions.
On Sunday, the company released a statement on its downstream efforts – activities related to the post-production of crude – after winter storms and “severe cold temperatures” at its U.S. and Canadian refining facilities impacted its operations.
“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,” Cenovus said in the statement.
“As a result, downstream throughput was significantly reduced in December.”
Cenovus’ new estimated throughput for the fourth quarter of 2022 is between 90,000-95,000 barrels per day (Mbbls/d) for its Canadian manufacturing efforts and between 370,000-380,000 barrels per day (Mbbls/d) for its U.S. manufacturing.
The company’s Lima Refinery is now at full capacity, according to the statement.
However, it expects the Lloydminster Upgrader and Borger Refinery to return to full capacity in mid-January. The Wood River Refinery is operating at around 65 per cent of full capacity and is expected to increase production during the first quarter.