by The Canadian Press
Last Updated Jul 5, 2021 at 7:09 pm ADT
CALGARY The Alberta government is taking 50 per cent ownership of the controversial Sturgeon Refinery northeast of Edmonton.
The province has signed a restructuring deal that also extends the length of Alberta’s processing contract with the refinery by 10 years, to 2058.
The province says the deal means less taxpayer risk in the long-term. It says Alberta will benefit from being both a toll payer and a facility owner.
The government says the restructuring deal won’t cost the province anymore than it was already obligated to pay as a toll payer. The government-owned Alberta Petroleum Marketing Commission has a contract to provide bitumen to the refinery.
July 05, 2021 - 3:40 PM
CALGARY - The Alberta government is taking 50 per cent ownership of the controversial Sturgeon Refinery by paying $825 million to reduce tolling costs at the facility northeast of Edmonton.
The province has signed a restructuring deal that also extends the length of Alberta s processing contract with the refinery by 10 years, to 2058.
The deal means less taxpayer risk in the long-term and it wonât cost the province any more than it was already obligated to pay as a toll payer, the province said Monday.
The government-owned Alberta Petroleum Marketing Commission has a contract to provide bitumen to the refinery.
The government-owned Alberta Petroleum Marketing Commission has a contract to provide bitumen to the refinery.
Under the terms of the new deal, the province will pay North West Refining $425 million for its 50 per cent equity stake in the refinery and will pay Canadian Natural Resources Ltd., which will continue to own the other 50 per cent of the refinery, $400 million.
As a result of making the payments now, the province will not have to pay approximately $1 billion in tolling payments over the next 30 years. It will also get to play a decision-making role in the refinery’s operations.
In a news release, Energy Minister Sonya Savage said the restructuring will benefit Albertans in the long run.
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The province announced a new agreement Monday that will restructure the project’s finances to save an estimated $2 billion over the life of the project, extend the government’s obligation to supply bitumen for processing until 2058, and make the Alberta Petroleum Marketing Commission (APMC) a 50 per cent equity partner.
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Energy Minister Sonya Savage said in an interview it was the best option to reduce the mounting long-term costs for taxpayers.
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