Alberta retools bitumen royalties

The Alberta government is seeking reaction from companies interested in processing bitumen as it tests the market for a plan to take some oil sands royalties in kind rather than cash.

The government has posted a request for expressions of interest, including applications to upgrade or refine the bitumen within the province, or as feedstock for petrochemical plants.

“This is about encouraging value- added in Alberta,” by creating, upgrading and refining jobs, said a spokesman for Alberta Energy.

“Albertans have said they want upgrading within the province and long-term sustainable jobs,” he said. “This is one of the tools we have for making those things happen.”

The spokesman said Alberta is not interested in selling any bitumen collected at a discount price, nor would it approve upgrader projects that are not economically viable, in order to create jobs.

Hugh MacDonald, energy spokesman for the Alberta Liberal party, said the government has yet to complete a “bitumen valuation index,” originally promised for June, and that should happen before any deals are made.

The deadline for proposals is Oct. 17.