Alberta utilizes $1bn funding to provide momentum to bitumen exports
Category: #world  By Dhananjay Punekar  Date: 2018-02-27
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Alberta utilizes $1bn funding to provide momentum to bitumen exports

Alberta, one of the most proactive provinces situated in the western part of Canada, has reportedly announced loan grants worth nearly USD 1 billion, which is likely to raise the bitumen quantity transported via the current pipelines. Through this investment, the region has assured assistance in transforming partial-upgrading systems into commercial ventures.

Alberta’s move has been hailed as a rather strategic initiative that will aid efficient transportation of Bitumen through pipelines, assisting oil & energy firms to increase their exports. As per the regional government administrators, partial upgrading can increase pipeline capacity by nearly 30%. However, the oil sands crude of the province is valued at reduced worth as compared to its counterparts across the United States and the rest of the globe.

Industry analysts are of the view that if the bitumen exports increase through partial upgradation in Alberta, firms will be able to receive the same price for their crude as elsewhere, thereby making the province a lucrative business destination. As per the data presented by the government of the province, oil sands firms spent nearly USD 13.3 billion on diluent in 2016, and a large portion of the same was imported. The data further clarified that the decision to partially upgrade bitumen will reduce the diluent demand.

The partial-upgradation program is slated to commence between 2019-2020 and continue till next eight years. The estimated investments worth USD 1 billion are projected to be segmented into two parts: USD 800 million as loan guarantees while USD 200 million in the form of grants. Government sources have forecast the setting up of two to five partial upgrading units in the province. Experts believe that the project will fetch nearly USD 5 billion in the form of private fundings and create 4000 jobs during the construction phase. In addition, the upgradation will be providing full-time employment to 200 skilled professionals after the projects commence their operations.  



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Dhananjay Punekar

Email: dhananjay.p@news.marketsizeforecasters.com   

Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

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