Trans Mountain pipeline boosts Suncor's output as production climbs to 840,000 barrels per day
Suncor Energy Inc. plans to increase its oil and gas production by up to 5 percent in 2025 while reducing costs from its oilsands operations, according to BNN Bloomberg.
The Calgary-based energy company aims to boost total production to between 810,000 and 840,000 barrels per day (bbl/d), compared to the estimated 2024 range of 770,000 to 810,000 bbl/d.
Suncor released its 2025 corporate guidance, emphasizing sustainability in performance and disciplined capital management. The company’s production growth reflects improvements achieved in 2024 and aligns with targets outlined during its Investor Day earlier this year.
However, planned turnaround and maintenance activities, such as a 91-day outage at Base Plant Upgrader 1 for coke drum replacement and turnarounds at the Edmonton and Sarnia refineries, are factored into the projections.
The company is also targeting increased annual refining utilization rates of 93 to 97 percent, supported by improved operational efficiency throughout 2024.
Suncor plans to allocate $6.1 billion to $6.3 billion in capital expenditures for 2025, down from $6.3 billion to $6.5 billion in 2024.
These investments focus on sustaining operations while pursuing high-value projects such as the Mildred Lake West Mine Extension, the West White Rose projects, and Petro-Canada retail network upgrades.
Under CEO Rich Kruger, who joined in 2023, Suncor has improved its financial performance. The company reports significant progress in reducing its corporate WTI breakeven cost by US$10 per barrel compared to 2023.
This includes ongoing activities at the Fort Hills North Pit to accelerate long-term production.
Kruger expressed optimism, stating, “Our confidence in our ability to deliver the commitments outlined in the three-year plan we put forward in May 2024 increases each day. The best is yet to come at ‘Today’s’ Suncor.”
Suncor is benefiting from the additional export capacity provided by the Trans Mountain pipeline expansion, which opened earlier this year.
This expansion has allowed oilsands producers to enhance output, contributing to Suncor’s plans to add more than 100,000 bbl/d of production between 2023 and 2026.
The company remains focused on generating free funds flow growth through increased volumes, cost reductions, and disciplined investment strategies.
“We are 100 percent focused on growing free funds flow per share through increased volumes, margins, cost reductions, and a disciplined capital investment program,” said Kruger.
