Alberta Premier Russell Notley is expected to announce a $ 2 billion private investment in partial improvement facility that the province's oil sector will be allowed to crude more crude pipelines in excessive crude pipelines.
This project, which Nostley is expected to announce on Tuesday, includes the Calgary Company and is located in the Edmonton area, is not authorized to speak publicly as per familiar government resources about the project.
The ability to upgrade is one of the most sophisticated notes of government policies designed to address the reduction of Canadian Oil prices and to address the shortage of new pipelines to bring Alberta Crude to new markets. She is promoting a plan that is NDP. As the government prepares for the elections, the rail and production cut increases.
The province has announced a $ 1 billion loan guarantee and grant for partial improvement projects with the target between the first two to five facilities. The government is reviewing the applications. What provinces Prant has provided to the project announced on Tuesday is not clear.
The company behind the project has signed the letter of intent and the final investment decision is yet to be taken, sources said. If it grows, it includes 2,000 construction jobs.
In recent years, major oil sandy makers have invested in new upgradable capacities due to multibillion-dollar-price tag and chemistry economics. However, some small companies billed themselves as specialized in specialized processing. It includes Value Surgeon, which is part of the earlier partial improvement project and Enlighten Innovation Inc. Has proposed.
Last May, the Alberta Energy Regulator approved revised appraisal applications for the 188,000-barrel-A-day betuoom upgrade and refinery near Edmonton. At the hearing, he put the capital expenditure at $ 3 billion. In 2004, the company's efforts to build such projects on the site, when BA Energy, the value building that was acquired, made the first proposal. It is called a heartland processing plant.
The $ 9.7 billion Stergan refinery located near Edmonton, the last major processing plant, was to start processing bitumen by the end of 2018. The project, owned by North West Refining and Canadian Natural Resources Ltd, had to face a series of costs. Backlash Overlays by the Government of Alberta His bitumen supply comes from the Canadian Natural and Alberta, which comes from the oil obtained in exchange for cash royalties.
Richard Mason, a former alumnus of the Calgary School of Public Policy and former head of the Alberta Petroleum Marketing Commission, said partial improvement facilities help the province's oil sector in two ways. To reduce upgraded crude from pipelines to precarious bitmen requires very little slowdown, which means partially upgraded oil takes less space. And with such facility, more American refineries can be processed on medium-grade oils, which expand the oil market.
"To this extent, you can get some products in this medium-conversion refinery, it broadens your market, so you will end up with better prices and more competition," Mr. Mason said in an interview.
"And to the extent that you have a low pipeline crowd, you will not end up with these backups of the inventory."
The provincial government ordered production cuts which were affected at the beginning of the year, which reduced the difference between Alberta Oil and West Texas Intermediate – which is known as the difference. Last fall, the difference remained at $ 50 per barrel, but in the last few weeks it has dropped to a low of US $ 10.
Mrs. Notley has promoted a rail car purchase plan to increase oil shipments by rail and ask the federal government for financial assistance.
And with the last fall, he invited the industry to come forward with suggestions for making a new refinery in the province. The government has not said that what motivations it will be prepared to offer. The deadline for proposals is February 8.
With Jeff Lewis and Jeffrey Jones reports