CALGARY — Sky-high differentials have convinced a second Alberta oilsands producer to take on the ability to deliver all of its production by rail, frustrating the goal of environmentalists who hope to stifle oilsands production by halting pipeline expansions.

On a conference call following release of its fourth quarter results Thursday, MEG Energy Corp. confirmed that it will have the capability by mid-year to move its entire 32,000 barrels per day of bitumen production by rail and river barge to the Gulf Coast.

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