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Originally Posted by SebC
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This has been talked about for awhile. They'll upgrade the oil at the NW refining plant and sell it as diesel. (It goes right to diesel, as opposed to most upgraders just making synthetic which has to be further refined.)
Of course, they've signed a long term contract with NW/CNRL to pay a fixed rate for the upgrading, so if the value of the refining is less than what they've signed up to pay they'll be out the money. With differentials the way they are now they should be good. I like it as a hedge to the provincial budget for when differentials are high, they're basically vertically integrating
There's probably also a bit of benefit to the province to increasing/diversifying the supply of diesel fuel in the province.