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Released July 17, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Hoping to lure more petrochemical sector investments to the province, Alberta's government plans to incentivize project development through a new grant program.
Details of the 10-year Alberta Petrochemicals Incentive Program (APIP) still are being worked out, but the planned grants have the potential to attract billions of dollars in investments, said Dale Nally, Alberta's associate minister of natural gas and electricity, in a July 9 press conference. Alberta officials plan to launch the program this fall.
Industrial Info is tracking $10.8 billion worth of petrochemical projects in Alberta. Among them are:
"But we really are just scratching the surface of our potential. The sky is the limit for the benefits this industry can provide to Alberta," Nally said. With its estimated 300-year supply of natural gas, strong workforce and relatively low corporate tax rate, Alberta has the potential to become a "world-leading petrochemical power house," he added.
According to Alberta's Industrial Heartland Association, Alberta's petrochemical sector has the potential to grow by more than $30 billion by 2030, resulting in more than 90,000 direct and indirect jobs.
Instead of offering oil and gas royalty credits to project developers, as has been done under Alberta's petrochemical diversification program, grant funding would be awarded after new projects are built and operational, Nally said. Grants will allow companies to better account for the full value of the incentives when they calculate the return on investments, he continued. For related information, see February 8, 2016, article - Alberta Seeks to Lure Petchem Projects with Oil & Gas Royalties Credits.
No spending cap has been set for the grant program, Nally said, adding an annual spending limit was possible.
Provincial opposition leader Rachel Notley was critical of the plan, calling it "half-baked" with few details, according to news reports.
Greg Moffat, senior director, business and economics, for the Chemistry Industry Association of Canada, said during the press conference that "Canada has seen a lot of missed economic opportunities due to a variety of reasons."
Moffat continued: "Over the last five years, we have seen over 500 global-scale chemistry investments announced in the United States with close to $300 billion. Where Canada should have seen 25 or 30 of those projects, with a projected value of around $30 billion, we have seen only three projects break ground to date in Canada, worth close to $11 billion."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Details of the 10-year Alberta Petrochemicals Incentive Program (APIP) still are being worked out, but the planned grants have the potential to attract billions of dollars in investments, said Dale Nally, Alberta's associate minister of natural gas and electricity, in a July 9 press conference. Alberta officials plan to launch the program this fall.
Industrial Info is tracking $10.8 billion worth of petrochemical projects in Alberta. Among them are:
- Inter Pipeline Limited's (Calgary, Alberta) Heartland Petrochemical Complex, a 1.1 billion-pound-per-year propane dehydrogenation (PDH) and polypropylene complex near Fort Saskatchewan; see project reports
- Pembina Pipeline Corporation's (NYSE:PBA) (Calgary)PDH and polypropylene plants in Redwater; see project reports, and
- Dow Incorporated's (NYSE:DOW) (Midland, Michigan) Fort Saskatchewan Ethylene Unit Expansion; see project report.
"But we really are just scratching the surface of our potential. The sky is the limit for the benefits this industry can provide to Alberta," Nally said. With its estimated 300-year supply of natural gas, strong workforce and relatively low corporate tax rate, Alberta has the potential to become a "world-leading petrochemical power house," he added.
According to Alberta's Industrial Heartland Association, Alberta's petrochemical sector has the potential to grow by more than $30 billion by 2030, resulting in more than 90,000 direct and indirect jobs.
Instead of offering oil and gas royalty credits to project developers, as has been done under Alberta's petrochemical diversification program, grant funding would be awarded after new projects are built and operational, Nally said. Grants will allow companies to better account for the full value of the incentives when they calculate the return on investments, he continued. For related information, see February 8, 2016, article - Alberta Seeks to Lure Petchem Projects with Oil & Gas Royalties Credits.
No spending cap has been set for the grant program, Nally said, adding an annual spending limit was possible.
Provincial opposition leader Rachel Notley was critical of the plan, calling it "half-baked" with few details, according to news reports.
Greg Moffat, senior director, business and economics, for the Chemistry Industry Association of Canada, said during the press conference that "Canada has seen a lot of missed economic opportunities due to a variety of reasons."
Moffat continued: "Over the last five years, we have seen over 500 global-scale chemistry investments announced in the United States with close to $300 billion. Where Canada should have seen 25 or 30 of those projects, with a projected value of around $30 billion, we have seen only three projects break ground to date in Canada, worth close to $11 billion."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
