Petro­chem­i­cal plants will di­ver­sify econ­omy, cre­ate jobs

The McLeod River Post - - Viewpoint - Spe­cial to the Post

Two new petro­chem­i­cal projects ap­proved by the pro­vin­cial gov­ern­ment will add jobs, di­ver­sify the en­ergy in­dus­try and cre­ate last­ing ben­e­fits for Al­berta’s econ­omy.

The econ­omy will get a sub­stan­tial boost from two projects that would, for the first time in Al­berta, process propane ex­tracted from nat­u­ral gas re­sources into value-added plas­tics prod­ucts that peo­ple all over the world use ev­ery day. The projects have been ap­proved to re­ceive roy­alty cred­its un­der Al­berta’s Petro­chem­i­cals Di­ver­si­fi­ca­tion Pro­gram, which was an­nounced and be­gan re­ceiv­ing ap­pli­ca­tions in Fe­bru­ary 2016.

The first project is a joint ven­ture be­tween Pem­bina Pipe­line Cor­po­ra­tion and Petro­chem­i­cal In­dus­tries Com­pany (PIC), which has been ap­proved to re­ceive up to $300 mil­lion in roy­alty cred­its to build an in­te­grated propy­lene and polypropy­lene fa­cil­ity in Al­berta’s Stur­geon County. The project is ex­pected to cost from $3.8 bil­lion to $4.2 bil­lion to build.

Dur­ing con­struc­tion of the Pem­bina/PIC fa­cil­ity, there would be an av­er­age of 2,000 to 2,500 work­ers on site, with more than 150 full-time op­er­a­tions and head of­fice jobs upon com­ple­tion. The fa­cil­ity would process about 22,000 bar­rels per day of propane into polypropy­lene, the plas­tic ma­te­rial used in the man­u­fac­tur­ing of a va­ri­ety of prod­ucts such as au­to­mo­bile parts, con­tain­ers and Cana­dian bank notes. Con­struc­tion is ex­pected to start in 2019, with the fa­cil­ity op­er­at­ing by 2021.

The sec­ond project, by In­ter Pipe­line, has been ap­proved to re­ceive up to $200 mil­lion in roy­alty cred­its to build a $1.85-bil­lion fa­cil­ity in Al­berta’s Strath­cona County. At the peak of the three year con­struc­tion phase 2,000 full-time equiv­a­lent jobs would be cre­ated. About 1,600 of those would be at the site and the rest would be in fab­ri­ca­tion or mod­ule shops and engi­neer­ing firms. An ad­di­tional 95 full-time op­er­a­tions po­si­tions would be cre­ated upon project startup.

The In­ter Pipe­line fa­cil­ity would process about 22,000 bar­rels per day of propane into propy­lene, a feed­stock for the pro­duc­tion of polypropy­lene and other deriva­tives. Con­struc­tion is ex­pected to start in 2017, with the fa­cil­ity op­er­at­ing in 2021.

The Petro­chem­i­cals Di­ver­si­fi­ca­tion Pro­gram was cre­ated to en­cour­age com­pa­nies to in­vest in the de­vel­op­ment of new Al­berta petro­chem­i­cal fa­cil­i­ties by pro­vid­ing roy­alty cred­its up to $500 mil­lion. Un­der the pro­gram, roy­alty cred­its are only pro­vided after con­struc­tion is com­pleted and a fa­cil­ity is op­er­at­ing.

Wh­lie there is no plan cur­rently to ex­tend the Petro­chem­i­cal Di­ver­si­fi­ca­tion Pro­gram, the gov­ern­ment is look­ing to build on the in­ter­est this pro­gram has gen­er­ated and ex­plore other in­vest­ment op­por­tu­ni­ties with petro­chem­i­cals that will ben­e­fit Al­ber­tans.

“This gov­ern­ment is com­mit­ted to di­ver­si­fy­ing our en­ergy in­dus­try and creat­ing good en­ergy in­dus­try jobs. Th­ese in­vest­ments will help cre­ate world-class petro­chem­i­cal fa­cil­i­ties, di­ver­sify our en­ergy econ­omy and cre­ate thou­sands of high-pay­ing, skilled jobs in Al­berta.”

Mar­garet McCuaig-Boyd, Min­is­ter of En­ergy

“Our Jobs Plan is at­tract­ing in­vest­ment to our prov­ince and build­ing an econ­omy for the fu­ture through ini­tia­tives like the Petro­chem­i­cals Di­ver­si­fi­ca­tion Pro­gram. Th­ese new fa­cil­i­ties will help us di­ver­sify the type of en­ergy we pro­duce right here in Al­berta and also cre­ate thou­sands of jobs to get us back on our feet. I was im­pressed by the many project pro­pos­als that were re­ceived and we are com­mit­ted to en­cour­ag­ing con­tin­ued growth in Al­berta’s petro­chem­i­cal sec­tor.”

Deron Bilous, Min­is­ter of Eco­nomic De­vel­op­ment and Trade

“We are hon­oured that the Gov­ern­ment of Al­berta se­lected our pro­posed project to be the re­cip­i­ent of $300 mil­lion in roy­alty cred­its un­der the Petro­chem­i­cals Di­ver­si­fi­ca­tion Pro­gram. This pro­gram shows lead­er­ship on be­half of the Prov­ince and will go a long way to en­sur­ing Al­berta’s econ­omy con­tin­ues to di­ver­sify and grow by en­abling projects such as ours to be more com­pet­i­tive in to­day’s global mar­ket.”

Mick Dil­ger, Pem­bina Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer

“Al­berta is a par­tic­u­larly at­trac­tive lo­ca­tion for a world-scale propane de­hy­dro­gena­tion fa­cil­ity, given the am­ple sup­ply of low­cost propane feed­stock. A propane de­hy­dro­gena­tion fa­cil­ity and as­so­ci­ated de­riv­a­tive fa­cil­i­ties are an in­no­va­tive way to pro­vide a new mar­ket for Al­berta propane, cre­ate jobs and help di­ver­sify our en­ergy based econ­omy.”

Chris­tian Bayle, In­ter Pipe­line Pres­i­dent and CEO

“The an­nounce­ment to­day of suc­cess­ful projects marks a sig­nif­i­cant step for­ward in fur­ther di­ver­si­fy­ing our en­ergy sec­tor. The Re­source Di­ver­si­fi­ca­tion Coun­cil is very sup­port­ive of the gov­ern­ment’s de­ci­sion to pro­vide the re­quired in­cen­tives to en­cour­age this in­vest­ment by in­dus­try to build world-scale petro­chem­i­cal plants in Al­berta. This is also an im­por­tant step in gen­er­at­ing greater value for our en­ergy re­sources, build­ing long term jobs and sec­ondary in­dus­tries, while se­cur­ing a larger share of world mar­kets for our re­fined en­ergy prod­ucts.”

Naushad Ja­mani, Chair, Re­source Di­ver­si­fi­ca­tion Coun­cil and Se­nior Vice Pres­i­dent, Olefins and Feed­stock, Nova Chem­i­cals

“This is great news for Al­berta’s In­dus­trial Heart­land and great news for our en­tire prov­ince. Th­ese new petro­chem­i­cal fa­cil­i­ties will cre­ate sta­ble jobs and new value chains that will ben­e­fit Al­ber­tans for decades to come. We com­mend the prov­ince on mov­ing for­ward with this pro­gram‎ and thank the com­pa­nies in­volved for mak­ing Al­berta’s In­dus­trial Heart­land their lo­ca­tion of choice.”

Coun­cil­lor Ed Gib­bons, Chair, Al­berta’s In­dus­trial Heart­land As­so­ci­a­tion

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