Alberta Taking Half-Stake in Oilsands Refinery to Reduce Tolling Costs
The Alberta government on Monday announced a C$825 million ($660 million) takeover of a 50% ownership share in Canada’s newest oilsands refinery near the provincial capital in Edmonton.
North West Refining Inc. is to be paid C$425 million ($340 million) for its half-equity in the 79,000 b/d refinery north of Edmonton. North West also agreed to forego future tolling revenue. Canadian Natural Resources Ltd., which owns the other 50% of the Sturgeon Refinery, is to be paid $400 million ($320 million ) and become the operating partner.
“Through the agreement, the government is able to capture the value of processing bitumen as both a toll payer and facility owner,” according to officials.
Government of Alberta takes 50 per cent stake in Sturgeon Refinery for $825 million
Business Related
Yes
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 won’t 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.
Government of Alberta takes 50 per cent stake in Sturgeon Refinery
Business Related
Yes
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.
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.