Alberta’s government is moving ahead with plans to allow oil sands producers to pay their royalties in bitumen, letting it turn around and sell those barrels in a major expansion of the government’s role in the market.

Alberta is pursuing international oil sales to diversify markets, reduce reliance on U.S. trade, and strengthen global energy partnerships.

Canadian province touts benefit of heavy oil royalties, as government and industry eye mothballed east-west pipeline projects

Alberta Premier Danielle Smith said on Monday that the Canadian province would continue to supply crude oil to the United States but that U.S. President Donald Trump's tariff threats also underscored the need for new markets.

The Alberta government says Premier Danielle Smith has been in talks with a multinational oil and petrochemical player about selling two million barrels per month of province-owned heavy oil.