Six-Billion-Dollar in Petro-Projects: Gas-To-Chemicals Shall Boost the Economy of Canada’s Western Province
The Inter Pipeline facility would process about 22,000 barrels per day of propane into propylene, a feedstock for the production of polypropylene and other derivatives. Construction is expected to start in 2017, with the facility operating in 2021.
“Alberta is a particularly attractive location for a world-scale propane dehydrogenation facility, given the ample supply of low-cost propane feedstock,” stated Christian Bayle, Inter Pipeline President and CEO. “A propane dehydrogenation facility and associated derivative facilities are an innovative way to provide a new market for Alberta propane, create jobs and help diversify our energy based economy.”
Diversifying the Petrochemical Industry
The Petrochemicals Diversification Program was created to encourage companies to invest in the development of new Alberta petrochemical facilities by providing royalty credits up to $500 million. Under the program, royalty credits are only provided after construction is completed and a facility is operating.
While there is no plan currently to extend the Petrochemical Diversification Program, the government is looking to build on the interest this program has generated and explore other investment opportunities with petrochemicals that will benefit Albertans.
Deron Bilous, Minister of Economic Development and Trade, stated: “Our Jobs Plan is attracting investment to our province and building an economy for the future through initiatives like the Petrochemicals Diversification Program. These new facilities will help us diversify the type of energy we produce right here in Alberta and also create thousands of jobs to get us back on our feet. I was impressed by the many project proposals that were received and we are committed to encouraging continued growth in Alberta’s petrochemical sector.”