The BRIK Request for Proposals (RFP) Process

Release of RFPs

  • On July 21, 2009 Alberta Energy issued an initial Request for Proposal (RFP) soliciting applications in using Bitumen Royalty-in-Kind on the Alberta Purchasing Connection website (reference numbers AB-2009-03118 to AB-2009-03120, closed August 21, 2009).   
  • On October 19, 2009 Alberta Energy issued a Final Amended Request for Proposal (RFP) soliciting applications in using Bitumen Royalty-in-Kind on the Alberta Purchasing Connection website (reference number AB- 2009-03116, closed January 27, 2010).
    With these Request for Proposals (RFP) the Department intends to retain consultants to assist the Department for the purpose of providing such expert analysis and other services as may be required.

Approach
The Request for Proposal (RFP) will focus on a value-added facility located preferably in the Industrial Heartland Area of Alberta.
        Rationale:

  • stimulate value-added processing in the province and obtain the best value for the government from its bitumen and potential products as directed by the Provincial Energy and Oil Sands strategies.

  • The industrial heartland will be a prefered location under the first BRIK RFP to leverage existing infrastructure and local synergy.

  • Companies outside Alberta have recently indicated an interest in using the royalty barrels as part of an entry strategy for investments in Alberta around upgrading, refining and gasification.

  • There are market opportunities for synthetic crude oil, diesel, refined products and polypropylene.

  • The municipalities in the Capital Region are attempting to attract heavy industry to the region and a chemical cluster is forming. 

    The provision of BRIK volumes to specific RFP winners is focused on security of supply for those projects, and will be based on firms paying a market price for the bitumen.  BRIK is not a method to provide subsidized bitumen. The Crown may be requested to enter into commercial custom processing arrangements to have its BRIK volumes processed within a privately owned upgrader.

Fairness Monitor

  • A Fairness Monitor has been established to monitor and report on fairness of the process specified in the RFP. They will provide oversight over all procedures undertaken to evaluate and select wining proposals.
  • Concerns or comments can be provided directly to the fairness monitor, by email ggc1936@aol.com

Review of RFP Applicants

  • A Government of Alberta cross ministry committee reviewed all the applicants in accordance with the criteria established within the RFP. The committee provided recommendations to the Minister of Energy for final approval of successful applicants. In July 2009, the Alberta government announced that it would begin negotiations with the successful applicant North West Upgrading Inc. Once completed, North West Upgrading would process 75,000 barrels per day of royalty in-kind-bitumen on behalf of the province. 

News Release - Province issues Final RFP to upgrade bitumen royalty-in-kindExternal link icon

Return to the BRIK main page or for more information email BRIK-RFP@gov.ab.ca 

 

Last reviewed/revised: 2011-11-04