ALBERTA AND CHEMISTRY SECTOR PARTNER FOR ECONOMIC GROWTH
As a long-time advocate of the pivotal role the chemistry industry can play in Canada’s economic growth, the Chemistry Industry Association of Canada (CIAC) applauds the efforts of the Alberta government in identifying the two projects that will receive royalty credits under the Petrochemicals Diversification Program.
As announced, Pembina Pipeline is to receive up to $300 million in royalty credits for its proposed integrated $4 billion propylene and polypropylene facility in Sturgeon County. Inter Pipeline is to receive up to $200 million in credits for its proposed $1.85-billion propylene facility in Strathcona County.
The two proposed facilities will process propane extracted from Alberta’s low-carbon natural gas liquids into value-added plastics products that are essential to the lives of Canadians. “Instead of shipping our raw resources and the jobs that go with it out of province to places like Texas and Louisiana, we are adding value to them here at home and creating a wide array of value-added products,” Deron Bilous, Minister of Economic Development said. “Everything from detergents, fertilizer, anti-freeze, textiles, and plastics for consumer goods, plastics used to make your cellphone, the dashboard for your car, and toys.”
“These investments,” said Margaret McCuaig-Boyd, Minister of Energy, “will help create world-class petrochemical facilities, diversify our energy economy and create thousands of high-paying, skilled jobs in Alberta.”
Bob Masterson, CIAC President and CEO, said the announcement is great news for the chemistry industry, the province, and Canada. “Alberta is sending a strong message to the world that it is prepared to do what it takes to win and is willing to face the competition as a leading destination for chemical investments,” Masterson said. “We commend the province for its bold efforts at a time when Canada is lagging as a destination for foreign direct investment.”
While the North American chemistry industry is the fastest growing manufacturing sector in North America, with over 250 projects valued at over $220 billion underway, Canada has failed to capture a comparable, historical ten per cent share of those investments. The investment interest generated by Alberta’s Petrochemicals Diversification Program sends a strong signal to the federal government and other provinces that the chemistry sector is poised for growth where governments are willing to partner in establishing the right conditions.
Further details about the projects can be found in the government’s news release.