Adding Value to Alberta’s Energy Resources
APMC is responsible for exploring new value-added opportunities for oil from oil sands and other sources, and for natural gas and natural gas liquids, and vetting proposals coming to government in these areas. APMC has a business development team that actively engages with industry proponents to understand and assess opportunities to enhance the value of Alberta’s hydrocarbon resources where the proponents are seeking greater government understanding or commercial involvement in their proposals. Engagements have included a range of proponents seeking to develop partial upgrading, upgrading, refining, and petrochemical projects over the past several months. APMC is also responsible for continuing and completing existing commitments to the Sturgeon Refinery, its only commercial arrangement in place in this area at present.
Sturgeon Refinery Project – The project, part of the North West Redwater Partnership (NWRP), is owned 50/50 by North West Refining Inc. and Canadian Natural Resources. The first phase of the $8.5 billion refinery project will have processing capacity of 78,600 bbl/d of bitumen blend feedstock (50,000 bbl/day of bitumen) and will be operational in 2017. APMC has signed a processing agreement which is based on a 30 year tolling arrangement. APMC will provide 75% of the required bitumen blend feedstock. Condensate will be recovered and the bitumen will be processed into diesel, vacuum gas oil and LPGs. APMC will retain ownership of its share of the condensate and refined products which will be sold into the local and export markets, and will benefit from the value uplift of these refined products relative to the bitumen feedstock cost, less the processing toll. NWRP was selected to construct and operate the refinery through a Request for Proposal process in 2009 under Alberta's Bitumen Royalty in Kind (BRIK) policy.
This project ensures we are getting the best value for our bitumen. By refining products that have a higher price (value), we expect an increase in the value of the bitumen of roughly $200 to $700 million depending on market prices.
In addition, other benefits associated with refining our bitumen right here in Alberta include:
- An estimated 10,000 jobs during construction, plus associated spinoff employment;
- Roughly $100 million (present value) of provincial and property taxes;
- Additional enhanced oil recovery royalties; and
- Reduced carbon dioxide (C02) emissions in the atmosphere.
- Agreement to Process Crown Royalty Bitumen (restated April 7, 2014)
- Agreement to Process Crown Royalty Bitument, Schedule 1
- Agreement to Process Crown Royalty Bitumen, Schedule 2
- Agreement to Process Crown Royalty Bitumen, Schedule 6
- Agreement to Process Crown Royalty Bitumen, Schedule 8
- Agreement to Process Crown Royalty Bitumen, Schedule 10
- Agreement to Process Crown Royalty Bitumen, Schedule 12
- Lenders Funding Agreement (April 7, 2014)
- Subordinated Debt Facilities - Base Obligations Agreement (April 7, 2014)
- Subordinated Debt Facilities - Additional Obligations Agreement (April 7, 2014)
- Subordination Agreement (Subordinated Debt) (April 7, 2014)
- Collateral Rights Agreement (April 7, 2014)