CIAC welcomes Alberta Government’s announcement to continue building on the success of the Petrochemicals Diversification Program
October 24, 2019
The Chemistry Industry Association of Canada (CIAC) is very pleased that the Alberta Government has confirmed its $1.1 billion commitment to the second round of funding for the Petrochemicals Diversification Program (PDP2).
PDP2 supports privately funded large-scale projects by providing royalty credits to companies that build facilities to turn ethane, methane, and propane feedstocks into products such as plastics, fabrics and fertilizers. Royalty credits are issued once projects become operational.
“We are very pleased that Alberta is committed to moving forward with this program. The first round of PDP provided $500 million-worth of royalty credits that resulted in over $9 billion of new chemistry investment now underway in Alberta. This announcement will allow Alberta to sustain the momentum, attract billions more in much-needed investment and create good-paying jobs while adding value to Alberta’s world-class, low-carbon energy resources,” said Bob Masterson, President and CEO of CIAC.
Under PDP2, Alberta received 20 additional applications, totalling close to $60 billion in proposed investment. In continuing the PDP2 program, Alberta stands to realize more than $20 billion in incremental investment.
“CIAC congratulates the government on moving forward with PDP. We will continue to work collaboratively with all stakeholders, especially the Alberta Government, to develop a long-term framework in Alberta of transparent and predictable investment supports that levels the playing field for new investments in Alberta,” Mr. Masterson said.