Province of Alberta has signed a major railway deal to move Oil to Market
The historic rail deal between Canadian Pacific, Canadian National and the provincial government means Albertans should get a better price for our energy resources.
The $3.7 billion investment by the NDP government will see an estimated 4400 rail cars move up to 120,000 barrels per day by next year.
The Government of Alberta will purchase crude oil from producers and load it onto the rail cars at onloading facilities across the province. The crude oil will then be shipped to market. These actions will help industry including small producers who may not have the ability to take this action on their own.
The cars will initially ship 20,000 barrels per day out of the province but as more come into service, the shipping commitment will ramp up to 120,000 bpd by the middle of 2020.
The government expects to see $5.9 billion in revenue over the three years, via the sale of oil, royalties, provincial tax revenue and an anticipated narrower price differential.
Premier Notley speaking at a news conference Tuesday afternoon