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Alberta commits $1B on incentives for more oil upgrading

Last Updated Mar 13, 2018 at 8:47 am MDT

Minister McCuaig-Boyd announces details of Bill 1 (Government of Alberta)

EDMONTON – Alberta is committing up to $1 billion on incentives to grow its downstream oil production.

Energy Minister Marg McCuaig-Boyd says the money is to be used for loan guarantees, grants and royalty credits to spur more private-sector investments in processing Alberta crude.

There will be $500 million in royalty credits for a second round of the petrochemicals diversification program _ starting in 2020 and spread over four years.

Another $500 million is for loan guarantees and grants for a petrochemical feedstock program starting in 2021.

The plans are contained in legislation introduced by McCuaig-Boyd in the house last week.

The money is on top of $1 billion in loan guarantees and grants recently announced by Premier Rachel Notley for more partial upgrading by oil developers in Alberta.