An aerial photo of Methanex's current facility in Geismar, Louisiana. The methanol producer announced plans to expand its facility in Louisiana following an unsuccessful 2016 Petrochemical Diversification Program application. The company said at the time a proposed expansion in Medicine Hat will continue to be considered (Photo credit: Methanex)

By Alex McCuaig

Applause from Methanex

Petrochemical program could see renewed interest in Hat industrial expansion

Jul 9, 2020 | 12:30 PM

MEDICINE HAT, AB – An Alberta government grant program announced Thursday could be a boon for local heavy industries that rely on natural gas, especially Methanex and its Medicine Hat expansion project.

The announcement of the 10-year Alberta Petrochemical Incentive Program (APIP) was light on details, including how much the program will cost taxpayers.

But it does build on the Petrochemical Diversification Program (PDP) which Methanex unsuccessfully applied to under the NDP government in 2016.

Following that decision the company chose Louisiana for its next expansion project but retained the billion-dollar project which would see a 200 per cent increase in methanol production for future considerations.

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It’s that type of investment situation which Dale Nally, Alberta’s associate minister of natural gas, says the APIP is aimed at addressing.

“Over the past decade, the United States attracted $250-billion – more than 10 times that which was invested in Canada,” said Nally. “That’s why we are taking action now, in order to secure the most benefit we can for our province and all Albertans.”

Nally added that unlike the PDP program, APIP will provide grants to petrochemical companies once projects are completed instead of royalty credits.

He says more details on the program will be released in the fall.

CanCarb and CF Industries could also potentially benefit from the program.