27 August 2008 18:19 [Source: ICIS news]
TORONTO (ICIS news)--A decision by Alberta’s provincial government to take bitumen as a royalty-in-kind instead of cash is a positive for the province’s chemicals sector, industry officials said on Wednesday.
The move, aimed at ensuring that more of the upgrading of Alberta’s heavy oil sands crude take place in the province, rather than at US refineries, would result in more opportunities to glean ethane-rich off-gases from upgrading processes and convert them to petrochemical feedstock, they said.
“We welcome this [royalty-in-kind] decision as an opportunity for more value-added production in ?xml:namespace>
Aux Sable is involved in a project that produces ethane feedstock from off-gases provided by a bitumen upgrader in
In a statement on its website the
“Submissions should reflect the province’s objective of maximising return from its royalty share of bitumen, and may contemplate: upgrading, refining, producing petrochemicals, managing commercial processes, marketing higher value products, facilitating access to new markets, providing infrastructure, providing ancillary services or any other related activity,” it said.
The government’s bitumen-in-kind royalty decision comes on top of its ethane extraction policy to boost ethane availability in the province.
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