Alberta Premier Jason Kenney speaks to the Canadian Club of Ottawa, Monday December 9, 2019 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

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

Former premier Rachel Notley planned to move up to 120,000 barrels a day under deals with CP, CN

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.

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

He says the NDP is responsible for the hit to provincial coffers.

“They never should have made this deal. The private sector was willing to move this crude by rail and has done so,” Kenney said in Calgary on Tuesday.

“(Former premier) Rachel Notley is entirely responsible for the deal, for its net cost, for the loss. We, however, have managed to limit the damage, reduce the damage by $500 million.”

RELATED: Rail strike, pipeline spill prompt Alberta to extend oil curtailment levels

Alberta Finance Minister Travis Toews is to deliver the 2020 budget on Feb. 27.

The Canadian Press

Like us on Facebook and follow us on Twitter

oil & gas

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

PHOTOS: Flooding hits town on the afternoon of July 7th

Severe afternoon rain sent some folks out to explore in ‘creative’ ways

Stettler Town & Country Museum almost back to full hours

Some buildings are closed due to ongoing hail damage repairs

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

A look back – marking the opening of the new Town Office on the corner of Main Street and 49th Ave. in 1966

The opening was attended by deputy premiere A. J. Hooke, who acted as the main speaker at the ceremony

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

Grizzly bears in the dark as they try to share living space with humans: study

Grizzly bears in the dark as they try to share living space with humans: study

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

Alberta bill proposes major changes to union strike rules and funding

Alberta bill proposes major changes to union strike rules and funding

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Kanye West breaks with Trump, claims 2020 run is not a stunt

Kanye West breaks with Trump, claims 2020 run is not a stunt

Most Read