By Charles Lefebvre

Province to invest $1 billion in bitumen upgrading projects

Feb 26, 2018 | 11:09 AM

EDMONTON, AB — The provincial government has announced a large investment into its oil industry.

During a news conference on Monday, the government announced it will be investing $1 billion over the next eight years in oilsands bitumen upgrading. The money will be used for loan guarantees and grants The investment will begin next year.

“This process will help us get full value from our resources, attract billions in investment and create thousands of jobs right here in Alberta,” said Premier Rachel Notley during the press conference.

“Albertans are right to want more done with their energy resources,” said Notley. “More jobs here in Alberta. More upgrading here in Alberta, and more value, wealth and prosperity here in Alberta.”

If successful, two to five partial upgraders could be built in the province. Alberta says the upgraders could result in up to $5 billion in private investment, 4,000 jobs during construction and 200 full-time jobs during operation.

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The goal of the project is to have Alberta’s bitumen to be upgraded in the province to allow more of it to flow through pipelines, leading to an increase in volume and sales.

“Because it won’t be diluted, this process will allow us to move more bitumen through existing pipelines, and through future pipelines,” Notley said. “This means we can get greater use of the safest, most efficient and greenest way to transport our bitumen, and it will reduce the oil price differential that is costing us billions every single year.”

The decision comes following recommendations from the government’s Energy Diversification Advisory Committee. The full report can be read here. 

The committee is also recommending the province should place 30 per cent of royalty revenues to a diversification fund.

-With Files from The Canadian Press