The Alberta government is building its own oil sands infrastructure to produce crude oil
The Alberta NDP government is expanding its own exploration and production of oil sands crude oil, saying it will create a new industry in a province that already depends heavily on the export of the resource.
The announcement by Environment Minister Catherine McKenna came as part of a broader oil sands strategy unveiled Monday that calls for the creation of a new $1.9 billion industry to supply Alberta’s oil sands production.
Alberta Premier Rachel Notley’s announcement follows the province’s decision last year to build a pipeline from northern B.C. to Kitimat, B.S. The pipeline would eventually lead to a terminal in Kitimata, B and export Alberta’s crude to a shipping terminal in Edmonton.
The new industry, the Alberta Oil Sands Development Corporation, was created by the province in an act of parliament in October.
It is being run by a consortium led by private-equity firm Bain Capital, which owns several oil sands projects.
“The creation of the new industry will create thousands of new jobs in the oil sands region,” McKenna said.
Premier Notley said she was inspired by the U.S.-based oil sands development company TransCanada Corp.’s Keystone XL pipeline, which is expected to bring 1.7 million barrels per day of Canadian crude oil from Alberta’s oilsands to refineries in the Gulf of Mexico.
The company says the pipeline will help provide the U-turn that is needed to ensure that the U,S.
market for oil does not collapse.
McKenna said the new oil sands industry would provide a strong economic boost to Alberta, and provide an “end-to-end supply chain” for Alberta’s export market.
“This will provide the opportunity for the province to grow and thrive, and will be a model for other jurisdictions in the world,” she said.
McKennedy said the Alberta government would create an oil sands pipeline to connect Kitimats port at Nacogdoches to the proposed Keystone XL oil pipeline in southern Alberta.
The Alberta government says the new development will help boost exports of Alberta’s Canadian crude to refiners in the U