Husky Energy said it has commenced steam operations at the Edam East heavy oil terminal in Saskatchewan.
It is the first of three new thermal projects which are expected to come online this year.
The 10,000 barrels per day Edam East development is expected to produce first oil early in the second quarter of the year.
Chief executive Asim Ghosh said: “Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low sustaining capital business.
“With the addition of Edam East, Vawn and Edam West we expect to add about 24,500 barrels of new production by the end of 2016.
“With fast build times and quick ramp ups, these projects typically surpass their nameplate capacity in their early years and the operating costs are amongst the lowest to be found anywhere in the industry.”
