Suncor Energy and Shell Canada reach agreement to reduce sulphur in diesel fuel

Suncor Energy Products Inc. and Shell Canada Products today announced they have signed an agreement under which Suncor’s Sarnia refinery will process Shell’s Sarnia refinery high-sulphur diesel into ultra low sulphur diesel.

This 20-year agreement enables both companies to meet federal regulations for ultra low sulphur diesel fuel that take effect on June 1, 2006. The new regulations will limit sulphur in on-road diesel fuel to a maximum of 15 parts per million, from its current maximum level of 500 parts per million.

Suncor will be responsible for the design, construction and operation of a hydrotreater at the Suncor refinery site. The hydrotreater will reduce the sulphur in both Suncor and Shell’s high-sulphur diesel fuel. Shell will pay Suncor a processing fee for this service.

“Operating a single hydrotreating unit, instead of two separate units, will result in environmental benefits for the Sarnia-Lambton community,” said Kirk Bailey, Suncor’s vice president, Sarnia refinery. “This agreement enables us to meet new environmental regulations that will improve air quality and provide better quality products for consumers.”

“Shell Canada is committed to the principles of sustainable development,” said Peter St. George, Shell’s general manager, Sarnia Manufacturing Centre. “This agreement with Suncor is an example of how we integrate economic, environmental and social considerations into our day-to-day activities and plans.”

Engineering and construction details of the new facilities are in development and being finalized. Subject to receiving regulatory approval, Suncor expects to begin construction of the approximately $300 million diesel desulphurization project in May 2004, with project completion expected in the first quarter of 2006. Contractor employment will peak at approximately 1,000. Additional processing capacity will be installed to ensure an overall reduction of sulphur dioxide emissions from the refinery. Suncor will also design the new facility to meet or exceed regulatory emission requirements.

Suncor Energy Products Inc. is a wholly-owned subsidiary of Suncor Energy Inc. In addition to a refinery in Sarnia, Suncor Energy Products has a network of 287 Sunoco-branded retail and Fleet Fuel cardlock sites and has a 50 per cent joint venture interest in over 200 Pioneer and UPI retail sites. Suncor Energy Products Inc. manufactures, distributes and markets transportation fuels, heating oils and petrochemicals primarily in Ontario. For more information, see the Sunoco website at

Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc. of Philadelphia.

Shell Canada Limited is a major integrated petroleum company in Canada, comprising three business units. The downstream business manufactures, distributes and markets refined petroleum products across the country. Refineries in Montreal, (Quebec) Sarnia, (Ontario), and Fort Saskatchewan, (Alberta) convert crude oil into gasoline, diesel fuel, aviation fuels, solvents, lubricants, asphalt and heavy fuel oils. Shell has a Canada-wide network of 1,459 retail sites.

This news release contains forward-looking statements that may be identified by words such as “expected”, “estimates” and similar expressions. These forward-looking statements are not guarantees of future performance and actual results could differ materially. Risks and uncertainties include technical issues and uncertainties resulting from delays, changes in plans and the occurrence of unexpected events. These and other risk factors are discussed in more detail in Suncor’s Annual and Quarterly Reports to shareholders, Annual Information Form and other documents filed with securities regulatory authorities.

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For more information:

Neil Levine
Suncor Energy Products

Lesley Taylor
Shell Canada

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