Wide view of oil petrochemical refinery- Dreamstime Stock image

By Charles Lefebvre

Petrochemicals

Province to continue Petrochemical Diversification Program

Oct 23, 2019 | 4:21 PM

EDMONTON, AB — The United Conservative Government says it will continue a program started by the NDP government aimed at attracting investment into the petrochemical industry in Alberta.

Energy Minister Sonya Savage, along with Associate Minister of Natural Gas Dale Nally, announced Wednesday afternoon the province is committed to the Petrochemical Diversification Program.

The program, first announced in 2018, will provide $1.1 billion in royalty credits to companies that build facilities to turn methane and propane feedstocks into products ranging from plastic to fertilizers.

“Our government knows there is tremendous untapped potential to develop these resources,” Savage said in a news conference.

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So far, out of the $1.1 billion, $150 million in funding has been confirmed to companies, according to the province, who are encouraging companies to apply.

While the Petrochemical Diversification Program remains in effect, Savage announced two other programs, the Petrochemicals Feedstock Infrastructure Program and the Partial Upgrading Program

The feedstock program provided $500 million to back petrochemical feedstock infrastructure projects and the upgrading program was worth $1 billion, aimed at encouraging companies to do more partial upgrading of bitumen in Alberta.

Savage says the cancellation of those programs was to help ensure less risk for Albertans.

“These programs relied on grants and loan guarantees that carried a higher financial risk to our province, and ultimately to Albertans,” she said. “We want to ensure that the innovation and development that industry can bring to the province is fiscally prudent, and benefits both Albertans and investors in our province.”

During the conference, it was revealed nine further applications have been submitted and are being reviewed for the program. Locations and timelines for the projects were not revealed.