Questerre Energy's PX Energy oil shale facility in Brazil is shut for emergency maintenance after a furnace pipe failure. The company expects 3-4 weeks of downtime and C$1.5M in direct costs.
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Questerre Energy Corp. shut its PX Energy oil shale processing facility in southern Brazil after a critical pipe failure in the furnace that supplies heat to the main processing unit. The company said operations personnel initiated the shutdown promptly to limit further equipment damage. No injuries occurred and the main processing facility itself was not damaged.
The shutdown is expected to last roughly three to four weeks, Questerre said. During that time the facility will be offline, resulting in lost production and revenue. The company estimates the direct cost of the corrective work at about C$1.5 million.
Questerre plans to use the downtime to carry out additional maintenance designed to address inefficiencies that developed after the previous scheduled plant turnaround in 2025. The company said those improvements are forecast to enhance operating efficiency and increase production rates once the plant returns to service. The company believes the resulting production gains could, over the following three to six months, help offset the operating costs and lost revenue tied to the shutdown.
There is no assurance the improvements will materialize, Questerre cautioned. The anticipated benefits depend on successful remediation of the 2025 turnaround deficiencies. Unforeseen issues identified during the work could extend the shutdown or raise its cost.
The company still expects to proceed with its next scheduled plant turnaround in May 2027. Several components to be replaced at that time require long lead times and will not be available until next year, Questerre said.
Questerre is an energy technology and innovation company focused on responsible oil and gas development. It holds a significant natural gas discovery in the Quebec Utica shale, which it calls one of the most important undeveloped natural gas resources in Eastern Canada. The company said it will provide a further update on the progress and results of the turnaround upon completion of the work.
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