Alberta Premier Rachel Notley speaks during an announcement in Edmonton on Sunday, Dec. 2, 2018. THE CANADIAN PRESS/Jason Franson

Alberta investing $3.7B to move oil by rail, leasing cars

4,400 leased railway cars will move up to 120,000 barrels of oil per day by 2020

The Alberta government says it’s investing $3.7 billion to move the province’s land-locked oil to market by rail.

It says 4,400 leased railway cars will move up to 120,000 barrels of oil per day by 2020.

Shipments are expected to begin as early as July.

READ MORE: CP Rail identifies all 3 train derailment victims

The province estimates the plan will lead to a $5.9-billion increase in royalties, tax revenues and profits over three years, meaning a net gain of $2.2 billion.

It expects the discount for Western Canadian heavy oil versus U.S. light crude will shrink by US$4 a barrel.

READ MORE: CP Rail failed to provide proper service after B.C. bridge fire, court says

The rail investment is meant to be a medium-term measure as new pipelines to coastal ports, such as the Trans Mountain expansion to the West Coast, remain in limbo.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Alberta Election called for April 16th

Upcoming election will be about who is fit to be Premier, says Notley

Red Deer athletes qualify for Pan Am Games in Lima, Peru

The official Pan American Games will be held from July 26th to Aug. 11th

Local youngsters lend a helping hand to the Red Deer Hospital

First Steps and Beyond School students donate to Neonatal Intensive Care Unit

Red Deer RCMP arrest man during break and enter in progress

RCMP found two males in the parking garage attempting to steal a vehicle

Red Deer RCMP announce new Officer in Charge

Grobmeier has 26 years of service with the RCMP where he has moved through the ranks across Canada

Defiant vigil starts healing in New Zealand after massacre

Police say the gunman in the shooting that killed 50 acted alone

2019 BUDGET: As deficit grows, feds spend on job retraining, home incentives

Stronger economy last year delivered unexpected revenue bump of an extra $27.8 billion over six years

UPDATE Leduc RCMP say sexual assault claim was false

UPDATE Leduc RCMP say investigation revealed sexual assault never took place

Fought to unite Alberta conservatives: Former MP Kenney ready to run for premier

Kenney, 50, was born in Oakville, Ont., raised in Saskatchewan, and spent his adult years in Alberta

Alberta Premier Rachel Notley wants chance to ‘finish that job’

Notley, 54, is the daughter of the late Grant Notley, who led the NDP from 1968 to 1984

PHOTOS: Massive fire at Wetaskiwin’s Rigger’s Hotel

Multiple fire departments involved, building badly damaged

Alberta government announces further easing of oil production restrictions

The government said it will continue to monitor the market and its response to the increases

Trudeau condemns hateful, ‘toxic segments’ of society after New Zealand shooting

Prime Minister expressed sorrow at the many attacks in recent years

Air Canada grounds its Boeing Max 8s until at least July 1 to provide certainty

Airlines around the world have been working to redeploy their fleets since their Max 8s were grounded last week

Most Read