Market Snapshot: Production of condensate and pentanes plus reached an all-time high in western Canada in 2018

Release date: 2019-02-06

Condensate and pentanes plus are two important sources of diluent for Canada’s oil sands. In August 2018, production of condensate and pentanes plus in western Canada reached an all-time high of 414 thousand barrels per day (Mb/d); 35% higher than August of the previous year. Production in September fell to 401 Mb/d, 1.5% below August (Figure 1). Condensate and pentanes plus production averaged 379 Mb/d during the first 9 months of 2018, with Alberta producing 83%, British Columbia producing almost 17%, and Saskatchewan producing less than 1%.

Figure 1: Western Canadian diluent production

In its raw form, bitumen produced by the Canadian oil sands is thick like peanut butter. Therefore, bitumen must be diluted with a much lighter hydrocarbon so it will flow in pipelines. Oil sands “diluent” is a mix of thin oils that have a variety of names.^Footnote 1 The most commonly used light oils in the diluent mix are condensate, pentanes plus, and naphtha.^Footnote 2

Pentanes plus has been the largest contributor to western Canadian diluent production. However, since 2013, condensate production has been growing faster than pentanes plus production. This is because of growing condensate production from unconventional, liquids-rich gas wells in the Montney and Duvernay formations in Alberta and British Columbia. The share of pentanes plus production dropped from 87% in 2012 to 67% in 2018, and is expected to further decrease as future condensate production is expected to increase quickly.

In western Canada, pentanes plus and condensate production comes from gas processing units (gas plants), fractionators and other facilities scattered throughout Alberta, British Columbia, and Saskatchewan. Supply is transported by pipelines (including Peace, Rainbow, and Keyera) to the main oil sands diluent hub in Edmonton/Fort Saskatchewan (Figure 2). Fort Saskatchewan also receives diluent imports from the United States on the Cochin and Southern Lights pipelines, as well as by rail. From Fort Saskatchewan, several diluent pipelines owned by Enbridge, Inter Pipeline, and other companies transport diluent to oil sands producing regions.

Figure 2: Western Canadian oil sands diluent infrastructure

Date modified:

2023-11-28