Sunday , July 3 2022

UCP says it will do well on the pledge to leave NDP oil according to a rail agreement



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Rail cars are waiting for an injection in Winnipeg on 23 March 2014. The National Energy Board is saying that raw exports from the Canadian railways have grown slower in November, but still reaching a record t new. It says that Canada has exported 330,402 barrels of oil each day, up about one percent of the October total of 327,229 bpd but more than double the 148,311 in November 2017.

John Woods / THE CANADIAN PRESS

Alberta's United Conservative government has confirmed that it will move forward to eliminate millions in oil-on-railway contracts signed by its predecessors NDP.

The province is now working with the Canadian National Railway and Canadian Pacific Railway to get out of the NDP commitment and will consider a range of options, but would also be prepared to use legislation to cut the contracts as a last resort. , a government spokesman said.

“We have been clear from the start: the government, and the railways, should not have signed these contracts, which were rushed in by a dire government on the night. before election, ”said Christine Myatt, deputy director of Premier Jason Kenney, in a written statement on Saturday.

“There was no reason why private companies could not have gone on to transport more oil by train. That remains our position, ”added the statement. “If these contracts cannot be transferred to the private sector on acceptable terms, our government will do what we need to protect taxpayers Alberta.” T

NDP government Rachel Notley announced the rail agreement in mid-February, including leases for as many as 4,200 rail cars due to take 120,000 barrels a day out of Alberta.

The government said it would buy a rail service from CN and CP to transport raw to international markets, including the Gulf Coast, setting negotiating markets, unloading sites and purchasing agreements on the Alberta Petroleum Marketing Commission.

The province planned to spend around $ 3.7 billion on the three-year program, with the expected revenue of around $ 5.9 billion.

Notley said that she had moved to react to stressed pipeline capacity and increasing price difference between U. and Canadian scars. The contracts did not include provisions or penalties for early termination, but said that it is unlikely that the new government can transfer the capacity to the private sector without results, he said.

Sonya Savage, the new energy minister, said earlier that the contract situation was complex and described the NDP's decision to sign the contracts just before an election as "unconscious."

– with files of Dustin Cook and Calgary Herald

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