Petrochemical Industry Canadian Province of Alberta Offers 357 Million Dollar for Petrochemical Projects
The Canadian province Alberta plans to increase its attractiveness for petrochemical investments with incentives worth 500 million Canadian Dollars (US $ 357 million).
Edmonton/Canada – Canada’s province Alberta tries to fight off the effects of declining oil prices with new petrochemical incentives, news agency Bloomberg reports. The province, which is rich in oil sands, is especially affected by the price downturn for crude which makes oil production from tar less profitable.
Under the program, the regional government promotes the construction of plants that use methane or propane from natural gas to produce petrochemicals like plastics, detergents or textile fibers. Credits will be awarded once approved projects are completed and feedstock consumption begins.
While petrochemical facilities do not directly benefit from royalty credits, as they do not pay royalties, the credits earned by an approved facility can be traded or sold to an oil or natural gas producer. This producer would use these credits to reduce their royalty payments to government.
“The government’s action today to promote investment in the petrochemical industry is the right decision at the right time, not only for Alberta’s petrochemical industry, but also for skilled labour in the province. This program will create jobs for workers, but will also diversify our economy—which the province needs now”, stated Warren Fraleigh, Executive Director of the Building Trades of Alberta.