March 27, 2013 / 9:25 PM / in 5 years

Canada's Suncor scraps Voyageur oil sands plant

CALGARY, Alberta, March 27 (Reuters) - Suncor Energy Inc said on Wednesday it will not proceed with its proposed multibillion-dollar Voyageur oil sands upgrading plant in northern Alberta, because recent changes in oil market conditions have squeezed potential returns.

Suncor, Canada’s largest oil company, said it will take charges of C$140 million ($134 million) to earnings and C$180 million to cash flow as a result of the decision.

Suncor also said it bought Total SA’s interest in the upgrader partnership for C$515 million to gain full control of the assets. The plant was partially constructed, but work was halted during the financial crisis in 2008-2009.

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