Dec 12 (Reuters) - Suncor Energy ( SU ) on Thursday

projected higher oil and gas production and lower spending in

2025, as it aims to boost output from its oil sands assets while

keeping a tight lid on costs.

The second-largest Canadian oil producer expects production

to be between 810,000 and 840,000 barrels per day (bpd) next

year, up from its 2024 estimate of 770,000 to 810,000 bpd.

Suncor's operations has steadily improved since former Exxon

Mobil executive Rich Kruger took over as CEO in April

2023.

Canadian oil producers have been encouraged to lift their

production targets as export capacity has increased since the

startup of the Trans Mountain Pipeline expansion project earlier

this year.

Suncor also forecast a slight rise in refinery throughput

volumes between 435,000 and 450,000 in 2025. It expects refining

utilization to be between 93% and 97%.

The U.S. Energy Information Administration predicts

increased fuel demand in the United States, Canada's largest

crude market, due to an anticipated uptick in industrial

activity.

Still, U.S. consumption of Canadian oil could take a hit if

President-elect Donald Trump imposes a 25% import tariff.

Suncor expects capital expenditure for 2025 to be between

C$6.1 billion ($4.31 billion) and C$6.3 billion, compared to the

current year's C$6.3 billion to C$6.5 billion forecast.

Capital spending next year will remain focused on the

development of Mildred Lake West Mine Extension in Alberta and

the offshore West White Rose project among other areas, the

company said.

($1 = 1.4159 Canadian dollars)

(Reporting by Sourasis Bose and Vallari Srivastava in

Bengaluru; Editing by Tasim Zahid, Shounak Dasgupta and Sriraj

Kalluvila)