Western Canada Continues to Invest in Future as a Petrochemical Hub of the North

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Researched by Industrial Info Resources (Sugar Land, Texas)--The western provinces of Canada, including Alberta, British Columbia, Manitoba, Saskatchewan, the Yukon Territory and the Northwest Territories, have consistently invested largely in new capacity projects and expansions in the Chemical Processing Industry (CPI) during recent years. Alberta, British Columbia and Saskatchewan have been the focus for much of this spending, as they are home to the largest portion of the nearly 100 CPI plants operating in the region. Earlier this year, Industrial Info reported that CPI spending in Western Canada was expected to reach $300 million in 2008 based on projects identified as part of Industrial Info's North American Project Database. Projected CPI spending for 2008 in the region has already jumped to an estimated $500 million.

A great deal of this spending is spurred by investments in the exploitation of oil-sands reserves in Alberta. These reserves are expected to provide a new source of crude oil feedstock for refineries in the region, as well as those located across portions of the United States. With this activity comes a number of related downstream and intermediate products, such as syngas and the ability to supply feedstock to the region's growing petrochemical industry.

The trickle-down effect of investments in oil sands and related industry has bolstered confidence in the production of other chemicals in the region, such as chlorine, ammonia, potash and others. Each of these chemical commodities are enjoying tremendous growth in the global CPI market, and the potential for Western Canada to make its name known as a significant player in the global market is helping in a big way. Two of the largest CPI projects planned to begin construction this year are for the expansion of chlorine and ammonia. Canexus Limited Partnership (Calgary, Alberta) has an engineering and construction team in place for a planned $200 million technology conversion at its North Vancouver, British Columbia, plant site that is expected to be in the field very soon. Saskferco Products Incorporated (Belle Plaine, Saskatchewan) also has an engineering and construction team in place and has begun construction for an estimated $100 million ammonia and urea plant expansion of its Belle Plaine plant site.

This level of project spending continues to put a strain on the already very tight supply of craftsmen and materials necessary to support the region's rapid growth. No different than CPI plant owners in the United States, craftsmen are being recruited and employed globally to provide the support necessary to make these projects a reality. Looking ahead to 2009 and beyond, Industrial Info is already tracking an additional $1.3 billion in future CPI spending planned for this region, and more are being identified monthly.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.