NDP explores support for refinery
Opposition parties accuse Notley of desperation ahead of 2019 election
Alberta is putting out feelers to the private sector to see if there’s any interest in building a new oil refinery in the province.
It’s the latest in a series of moves announced by Premier Rachel Notley to help combat the ongoing oil price crisis.
Notley’s Tuesday announcement in Edmonton was light on details — there are no goals yet when it comes to job creation numbers, costs or how the government would even support construction.
But she was firm on one thing: The project must offer a solid investment return for Alberta.
“It must diversify how we use the energy resources that we as Albertans all own. We need to see jobs for Albertans, we need to see participation from Indigenous communities, and we need to see sound engineering designs and financial plans,” Notley said.
The premier said new and expanded refining capacity is part of the solution to the oil price differential crippling Alberta’s — and Canada’s — economy, and she’s excited to hear what companies have in mind.
“We know companies are interested — we’ve heard it first-hand — so we are stepping up,” she said.
WHAT ABOUT NORTH WEST STURGEON REFINERY?: ALBERTA PARTY
Opposition parties were unimpressed with the plan.
United Conservative finance critic Drew Barnes said in a statement his party would review the details, but added “Albertans will recognize today’s non-announcement from the NDP for what it is: the latest ploy from a tired, broke, and increasingly desperate government quickly approaching the 2019 election.”
Alberta Party energy critic Rick Fraser also slammed the plan as a delay tactic, and accused the government of gambling away Alberta’s future.
“The time to make bold decisions is now,” he said.
“If the Notley NDP were serious about investing in Alberta and expanding our oil refining capability, they would have already moved on the North West Refinery, instead of sending mixed signals that create uncertainty.”
The long-awaited North West Sturgeon Refinery, with an expected capacity of 80,000 barrels per day, is slated to begin commercial production in 2019.
That project — which saw its price tag balloon to $9.7 billion — was built near Fort Saskatchewan with the financial backing of the province, which guaranteed loans. It is the first new refinery to open in Alberta since the 1980s, built with the promise that Alberta will send a share of bitumen from its royalty-in-kind program to the Sturgeon Refinery to be converted into higher-value products.
Asked about the project Tuesday, Notley said the province had learned a lot of lessons since the project was championed by Ed Stelmach and his former Progressive Conservative government.
Construction on the refinery began in 2013.
Notley said the province needs to get more value for its energy resources, so Alberta should “start making more of the products that the world needs right here at home.”
The government will consider interest in new refineries or extensions to existing facilities. Private sector pitches will be accepted until Feb. 8, at which point the government will figure out the next best steps.
Energy Minister Margaret McCuaig-Boyd said companies will be required to submit a business plan including detailed project timing, exactly how they will get feedstock, and what role the government would play in the project.
“We don’t want to be having this same conversation, a frustrated conversation, 30 years from now,” she said.