Alberta Launches Petchem Grant Program
Hoping to encourage industry to move forward on a projected C$30bn (US$22bn) worth of potential natural gas value chain petrochemical projects, the Alberta government on July 9 announced the Alberta Petrochemicals Incentive Program (APIP).
Part of the province’s Covid-19 economic recovery plan, APIP will offer grants to new petrochemical projects developed over the next 10 years once they are up and running, Dale Nally, associate minister of natural gas and electricity, told a news conference. That differs from the system of offering royalty credits under the province’s existing Petrochemical Diversification Program, which will continue alongside APIP.
“While Alberta is already a Canadian leader in petrochemicals manufacturing, the sky is the limit for this sector’s benefits to our province,” Nally said. The program will target investments in the ethane, methane and propane value chains, he said.
Over the last 10 years, Nally said, petrochemical investment in the US reached US$250bn; over the same decade, only three projects, representing investment of less than US$25bn, have moved forward in Alberta. APIP, he said, will help Alberta attract that so-far missed potential.
“With our affordable 300-year supply of natural gas, technically skilled and educated workforce, and respected innovation and research sectors, Alberta is ready to seize the opportunity to become a global destination for petrochemical manufacturing, benefiting all Albertans.”
The government will work with industry over the rest of the summer to finalise program guidelines and will release more details about eligibility, process, governance and reporting requirements when the program is officially launched in the fall.