EDMONTON – The Alberta government says it’s investing $3.7 billion to move the province’s land-locked oil to market by rail.
It says 4,400 leased railway cars will move up to 120,000 barrels of oil per day by 2020.
WATCH: On Nov. 21, Crystal Laderas speaks with Tim McMillan of Canadian Association of Petroleum Producers
Shipments are expected to begin as early as July.
The province estimates the plan will lead to a $5.9-billion increase in royalties, tax revenues and profits over three years, meaning a net gain of $2.2 billion.
WATCH: On Oct. 22, Michael Lumsden reports on Premier Rachel Notley speaking on the pipeline delays.
It expects the discount for Western Canadian heavy oil versus U.S. light crude will shrink by US$4 a barrel.
The rail investment is meant to be a medium-term measure as new pipelines to coastal ports, such as the Trans Mountain expansion to the West Coast, remain in limbo.