UCP unloads crude-by-rail contracts signed under former NDP government

Feb 11, 2020 | 2:14 PM

CALGARY – Alberta Premier Jason Kenney says his government has unloaded crude-by-rail contracts signed under the previous NDP government, but details aren’t being disclosed yet.

His predecessor, Rachel Notley, announced plans last February to move up to 120,000 barrels of oil a day under deals with Canada’s two major railways, Canadian Pacific and Canadian National.

Kenney, whose United Conservatives won the election a few months later, promised to get rid of the contracts and leave it to the private sector to move Alberta’s oil to market.

He says the NDP’s rail deals would have cost the government $10.6 billion and brought in revenues of $8.8 billion for a loss of $1.8 billion.

He says the Alberta Petroleum Marketing Corp. has negotiated sales that will mean a loss of $1.3 billion.

“As a government, we are accountable to the taxpayer. We negotiated the best terms to get Albertans out of this tough situation.,” said Finance Minister and GP-Wapiti MLA Travis Toews, in a statement. “Industry is better able to manage the financial risk associated with the ebbs and flows of the marketplace. We will continue to make decisions that achieve the best outcomes for Albertans.”

Kenney says details of who is buying the contracts and on what terms are not being released yet because of commercial confidentiality.

by Canadian Press