Major Made-in-Alberta Investment Moves Forward - Gateway Gazette

Major Made-in-Alberta Investment Moves Forward

By Contributor

Feb 08

Thousands of jobs and $4.5 billion in private-sector investment are moving forward thanks to Premier Notley’s Made-in-Alberta energy strategy.

The final investment decision by Canada Kuwait Petrochemical Corporation (CKPC), which includes Calgary-based Pembina Pipeline Corp., will see construction of a petrochemical upgrading facility in Sturgeon County.

At the peak of construction, more than 3,000 workers will be on site, with the project expected to create over 200 full-time operations and head office jobs upon completion.

“Led by thousands of Alberta workers and a Calgary-based company, this project is truly Made-in-Alberta. By adding value to resources owned by all Albertans, we’re putting economic diversification first and seizing opportunities to upgrade more resources right here in this province.”

~Rachel Notley, Premier

The complex will process about 23,000 barrels per day of Alberta propane into polypropylene, which is a much higher-value plastic material used around the world to make products such as food packaging, auto parts and electronics.

CKPC was approved in 2016 to receive up to $300 million in royalty credits under the first Made-in-Alberta program to encourage private investment in petrochemical upgrading.

“This announcement is the culmination of many years of hard work with our partner to develop a project that is well-positioned to capitalize on Alberta’s abundant supply of propane and undertake value-added processing that benefits all Albertans. We want to thank the Government of Alberta for providing the incentive and vision that has helped make this investment a reality and we want to particularly thank the selection panel for their hard work and the consideration of Pembina’s application.”

~Mick Dilger, president and CEO, Pembina Pipeline Corp.

Construction is expected to start in 2019, with the complex fully operational by mid-2023. The project will receive royalty credits after the facility has been constructed and is in operation.

Another project, Inter Pipeline’s $3.5-billion Heartland Petrochemical Complex, is already under construction near Fort Saskatchewan as a result of this program. The complex is a similar gas-to-plastics operation, employing about 2,300 people during construction with 180 full-time jobs upon completion.

Made-in-Alberta strategy

Petrochemical upgrading

  • Two projects – CKPC and Inter Pipeline – were selected under the first round of this program, which was announced in 2016, for a combined $8 billion in private investment.
  • The government announced a second round of support for petrochemical upgrading in 2018, with total support now reaching $2.1 billion to unlock about $20 billion in private-sector investment.
  • This would help create as many as 15,500 jobs during construction of multiple petrochemical facilities across the province.

Partial upgrading of bitumen

  • $1 billion in grants and loan guarantees to encourage companies to build bitumen-upgrading facilities
  • Partial upgrading reduces the thickness of oil sands bitumen so it can flow through pipelines more easily, without having to be blended with diluent, or as much diluent, a thinning agent. Benefits include:
    • increased prices for our resources before shipping
    • up to 30 per cent more capacity on existing pipelines
    • more refineries around the world capable of processing our product
    • cost savings on diluent for industry
    • fewer emissions by removing high carbon content

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