Imperial noted that there is potential to further expand the project by up to an additional 75

Imperial Oil has made a final investment decision (FID) on the proposed development of its C$2.6bn ($1.98bn) Aspen oil sands project in Alberta, Canada.

The FID comes after the company received an approval from the Alberta government less than a week ago. The go-ahead represents the first new oil sands development to be approved since 2013, Reuters reported.

Located about 45km north-east of Fort McMurray, the project is expected to produce 75,000 barrels of bitumen a day.

According to Imperial, the Aspen project will include next-generation oil sands recovery technology to reduce greenhouse gas emissions intensity and water use by up to 25%.

“We have made the decision to proceed now because we believe this advanced technology will further the evolution of Imperial’s oil sands business.”

The commercial application of advanced solvent-assisted, steam-assisted gravity drainage technology is part of the company’s commitment to reduce greenhouse gas emission intensity of its operated oil sands facilities.

Imperial Oil chairman, president and CEO Rich Kruger said: “This is the right technology at the right time to make a competitive investment. We have made the decision to proceed now because we believe this advanced technology will further the evolution of Imperial’s oil sands business.”

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Construction of the project is expected to commence in the fourth quarter of this year, with project startup scheduled for 2022.

During its peak construction phase, the project is anticipated to generate 700 jobs. The company also expects to create more than 200 jobs during operations.

Imperial stated that there is potential to undertake further project expansion by up to another 75,000 barrels per day of bitumen production.

The news agency stated that Canadian producers have suspended new projects due to a lack of pipeline capacity.

Suncor Energy’s Fort Hills, which was approved in 2013, was the last major oil sand project to be approved in Alberta.