Al­berta ponies up petrochem grants

Alberta Oil - - OBSERVER | NEWS NUMBERS PEOPLE PLACES -

AL­BERTA’S NEW DEMO­CRATIC

govern­ment rose to power partly on a prom­ise to di­ver­sify the pro­vin­cial economy and cre­ate more “value-added” jobs in the en­ergy sec­tor. In Fe­bru­ary, the govern­ment laid out the plan. It would in­volve up to half a bil­lion dol­lars in in­cen­tives for com­pa­nies to build new petro­chem­i­cal projects, and would be paid out from the province’s roy­alty credit sys­tem. The plan was to trig­ger be­tween $3 bil­lion and $5 bil­lion in new chem­i­cal and plas­tics man­u­fac­tur­ing us­ing nat­u­ral gas byprod­ucts like meth­ane and propane. Nat­u­ral gas prices reached his­toric lows in early 2016, and pipe­line bot­tle­necks in the Cana­dian Mont­ney re­gion were met with a wave of new in­ter­state pipe­lines in the United States, fur­ther re­duc­ing the value of Cana­dian gas. De­spite the ben­e­fits of low feed­stock costs for man­u­fac­tur­ers, in­vest­ment in Al­berta’s chem­i­cal in­dus­try—val­ued at $14 bil­lion in an­nual sales, ac­cord­ing to the province—has lagged be­hind pow­er­house petro­chem­i­cal re­gions like the U.S. Gulf Coast.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.