Western Canada Continues to Show Strength in the Chemical Processing Industry as Project Activity and Investments Rise

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Researched by Industrial Info Resources (Sugar Land, Texas). Western Canada has positioned itself as Canada’s largest region for chemical processing industry (CPI) investment, ahead of Ontario, which is home to almost twice as many operational plants. Industrial Info is tracking approximately $170 million in capital and maintenance spending that is expected to be complete and online this year in Western Canada. In just the first five months of this year, thirteen new projects have already been identified compared to only seven new projects reported during the same time period last year, signaling a strong start for the year and a continued positive momentum for the future.

Total CPI spending in Western Canada has been up consistently over the past five years. Based on current active project activity, the potential of project completions doubling that of activity five years ago is a very real possibility with total investment values (TIV) nearing $150 million. Although the total spending is up considerably, the average TIV is down from last year’s $12.2 million and is currently at an estimated $8.5 million as a result of this increased activity.

Some of the largest ongoing active capital projects due to be complete this year include a formaldehyde plant addition being constructed by Dynea Canada Limited in Sexsmith, Alberta. This estimated $40 million project got underway in the summer of last year and is expected to be complete and begin commercial operations within the next few months. Air Products & Chemicals Incorporated (NYSE:APD) plans to begin commercial operations of its No. 2 hydrogen unit located in Edmonton, Alberta late this summer. Engineering and design was provided by Air Product’s hydrogen technology alliance partner Technip Incorporated and the plant’s new capacity is aimed at meeting the region’s growing demand for industrial gases by the refining industry.

Alberta is home to over half of all Western Canada’s 105 operational chemical plants providing over two thirds of the 9,000 CPI jobs in all of Western Canada. With the potential of billions being spent in the coming years for several large energy developments including oil shale mining and refining plus dozens of major pipe lines in the region, Alberta has the momentum to see it future investment maintain its upward momentum.

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