New program aims to attract petrochemical manufacturing to Alberta

Nally says that this program will mitigate financial risks for Albertans.

“While all eligible projects will receive funding, they will not receive a single dollar amount until they are operational and producing value-add petrochemical products to the Alberta, Canadian, and global markets. Through A-PIP, we will protect Albertans best interests and future economic prosperity, by ensuring the appropriate checks and balances are in place before doling out government dollars.”

Nally does add that, at the time of the announcement, there is no specifics on the funding involved in the grants or if there will be a cap.

“This is about creating jobs, but while also protecting Alberta tax payers. From our perspective, if we’re getting the return on investment that we need, and we’re getting billions of dollars in infrastructure development happening, and of course resource revenue for Albertans, then we’re not going to put a hard stop on it. But that said, we will continue to monitor the program, and assess it throughout the 10 years.”

He adds that they don’t intend to lose money through this program, and there will be assessments done over the course of the project, which may lead to annual caps being put in place.

Nally estimates this program could attract large scale petrochemical manufacturers, leading to the create around 90,000 construction jobs for Albertans, and hundreds more in manufacturing once facilities are operational.

Mark Plamondon, executive director of Alberta’s Industrial Heartland Association, says this is good news as government support is critical in attracting large scale investments.

“The Alberta Petrochemicals Incentive Program will have a significant impact on enhancing the competitiveness of Alberta when attracting large-scale, value-add investments, relative to other global jurisdictions.

“This program, coupled with the other tremendous competitive advantages that Alberta’s Industrial Heartland has to offer, including world-leading carbon capture and storage infrastructure, will stimulate job-creating economic activity that will benefit all Albertans and all Canadians.”

Nally and Plamondon say through consultations with industry partners, and estimates on methane ethane and propane value chains, they have determined that this program could lead to $30-billion in revenue for the province over the course of the 10 year program.

Nally also points to the importance in this industry and the products that’s produced with petrochemicals, from cell phones and computers to food packaging to eye glasses and more. He says the need for petrochemical manufacturing is especially needed now.

“Of course in these time, petrochemical manufacturing is playing a critical role in the fight against COVID-19. Helping to produce items like ventilators, gowns, and transparent face-masks.”

The province and industry partners will finalize the details of the program over the summer, and expect to officially launch A-PIP in the fall.

(everythingGP)

by Liam Verster

New program aims to attract petrochemical manufacturing to Alberta

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