Alberta is committing up to $1 billion to grow its downstream oil production.
Energy Minister Marg McCuaig-Boyd says the money is to be used for loan guarantees, grants and royalty credits to spur more private-sector investments in processing Alberta crude.
There will be $500 million in royalty credits for a second round of the petrochemicals diversification program – starting in 2020 and spread over four years.
Another $500 million is for loan guarantees and grants for a petrochemical feedstock program starting in 2021.
The plans are contained in legislation introduced by McCuaig-Boyd in the house last week.
The money is on top of $1 billion in loan guarantees and grants recently announced by Premier Rachel Notley for more partial upgrading by oil developers in Alberta.
READ MORE: Alberta to invest $1B over 8 years on bitumen upgrading projects
“It’s going to help us move away from the boom-and-bust policies of the past without sacrificing our leadership in the oil and gas industry,” McCuaig-Boyd told a news conference Monday.