Alberta takes larger marketing role

The Alberta Petroleum Marketing Commission is destined for a more proactive investment role if the provincial legislature agrees to seek out new opportunities for the government’s royalty crude and bitumen along with allowing the agency to participate in oil and natural gas projects.

Under the Building New Petroleum Markets Act, which is targeted for adoption in early December, the way would be opened for the APMC to grow its mandate beyond the 100,000 barrels per day of bitumen it is ready to provide to kick start TransCanada’s Energy East project, designed to move 1.1 million bpd of oil sands and light crudes to refineries on Ontario, Quebec and New Brunswick.

Currently the APMC markets 70,000 bpd of conventional crude and 300,000 bpd of bitumen — which could grow to 400,000 bpd in 2015 — that the Alberta government accumulates in lieu of cash royalties from producers.

As well, 37,500 bpd of the so-called Bitumen Royalty in Kind, BRIK, barrels have been committed to cover 25 percent of the feedstock needed to launch an upgrader by North West Upgrading, with Canadian Natural Resources as a partner.

Energy Minister Ken Hughes said in a statement that “reaching new energy markets by supporting and encouraging the development of infrastructure is critical to get the best value for our energy resources.”

He said the government will look at projects that “need strategic support from the province to enable them to happen.”

A spokesman for Hughes said the legislation is designed to give the Alberta government a chance to provide a stronger strategic direction to the APMC and give the agency a chance to “look at potential opportunities rather than waiting for them to come to us.”

He said the government realizes that there is more it could do to access new markets, including initiatives it learns about on trade missions, and wants the ability to “push the APMC to look at some other options.”

Alex Pourbaix, TransCanada’s president of energy and oil pipelines, welcomed the prospect of cooperation between government and industry to support infrastructure projects such as Energy East.

“Working together will ensure these vital resources move to market in a safe and reliable way,” he said.

—Gary Park