A U.S.-based oilfield technology group is preparing for a market rebound by investing in its Canadian operations.
The Oilfield Technology Group of Hexion, formerly known as Momentive Specialty Chemicals, announced last month that it would be expanding its resin coated proppant manufacturing facility located in Sturgeon County.
Resin coated proppants are used to maximize production from oil and gas wells during the hydraulic fracturing process.
The Sturgeon County plant is the only proppant manufacturing facility in the country and makes a product called Yukon Black, which can be used at low temperatures such as those experienced in Canada.
The announcement came at a time when oil prices were hovering around $50 USD per barrel – about half of what it was this time two years ago.
“Despite the volatility in the oil and gas markets, we are committed to serving the Canadian market in the long term and Hexion will be ready to meet the demands of the industry when it recovers,” said John Kompa, vice president of investor relations and public affairs.
The phased expansion project, which is already underway, will significantly increase the company’s manufacturing capacity and improve logistics to support future growth in the Canadian market.
The company purchased additional land north of Fort Saskatchewan to install a track that will accommodate over 100 railcars, as well as new sand storage facilities. The Ohio-based company said this will help respond to market demand more quickly.
Hexion’s production was set at 150 million pounds of proppant per year upon construction in 2005. The plant currently employs around 60 workers. This is not expected to change as a result of the expansion.
The expansion is expected to wrap up by the end of this year.
