New partial upgrading projects are expected to have a big effect on Alberta’s economy.
Premier Rachel Notley was in Calgary on Thursday where she spoke to the Canadian Association of Oilwell Drilling Contractors explaining the government’s plans to invest in six projects worth around $5 billion.
These initiatives are expected to create 10,000 construction jobs with 500 more positions during operations.
Notley says they’re still reviewing them but decisions will be made soon.
“We’ll be sitting down with those companies very shortly and expect big invest decisions soon, so we can add more value to our resources right here, so we can create more markets for our raw resources right here.”
This is in addition to the $1 billion the GoA announced in February to help get better value for the province’s natural resources.
Partial upgrading focuses on technology that reduces the thickness of bitumen so it can flow through pipelines more easily, avoiding the need for diluent. It’s expected to help industry save costs and help reduce pipeline capacity by 30 per cent.
Notley adds this will help them transport more product in our current pipelines as the wait continues for new ones.
“Since worked stopped on the Trans Mountain pipeline in August it’s cost the Canadian economy more than $6 billion – the only long-term solution to this is creating new pipelines and getting more value from our resources.”
This is the second major funding announcement the government’s made this week for the energy sector. On Tuesday, they stated they were allocating $600 million, totaling $1.1 billion after an earlier funding announcement, to petrochemical upgrading.
They expect this to help create 15,500 jobs during construction of multiple facilities and an additional 1,000 positions once they’re operational.