Alberta offers money to become the world’s largest producer of petrochemicals

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The government of Alberta says it is ready to give billions of dollars to attract investors keen to build or expand petrochemical facilities in the province, part of what it says is a push to be a global player in leading in the field.In a press release outlining Alberta’s new petrochemical incentive program, the government says it hopes to grow the sector by more than $ 30 billion by 2030 and compete with jurisdictions in Asia. , the Middle East and the American regions of the Gulf of Mexico.

“In addition to our existing petrochemical producers and all the companies that power and support them, we have a multigenerational supply of natural gas, an experienced workforce, and one of the lowest tax rates in the world. North America, ”Dale Nally, associate minister of natural gas and electricity, said in the statement.

“With the launch of this program, Alberta is moving towards achieving its goal of becoming one of the most attractive investment opportunities for petrochemicals in the world.

The details

The program would provide grants of up to 12 percent of eligible capital costs for new projects in the province. This money will only be offered in the later stages of construction to ensure the projects are already built.

The minimum investment required to be eligible is $ 50 million, with no upper limit, and the project must consume natural gas, natural gas liquids or petrochemical “intermediaries” and create new permanent jobs in the province.

The application window for projects of $ 50 million to $ 150 million will be open for five years and 10 years for projects exceeding this threshold.

Hydrogen projects

Hydrogen installations will be eligible for grants and the number of projects is not capped.

“Alberta has the potential to become a major player in the production of low carbon hydrogen and sustainable plastics, but we will only get there if we have a competitive advantage over other jurisdictions,” said Doug Schweitzer, Minister of Employment, Economy and Innovation, in the press release.

The government estimates that it could create more than 90,000 direct and indirect jobs and bring in $ 10 billion for the government if it meets the sector’s growth target of $ 30 billion.

The Globe and Mail reported on Friday that the province was in talks with a private Saudi Arabian company to build a $ 5 billion petrochemical plant in Alberta.

“From day one, we said we were going to look for international investors to create jobs in Alberta. We are pleased to see that interest has been expressed by a number of global companies from different regions, ”said Jennifer Henshaw, spokesperson for Nally, in response to questions on the Globe article.

“We hope to have more to say in the coming months, but cannot comment at this time due to confidentiality and commercial sensitivities. “

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