By Ashley Wiebe

Methanex denied provincial funding

Dec 5, 2016 | 12:00 AM

MEDICINE HAT, AB — Many in Medicine Hat had high hopes Methanex would be able to undergo a $1 billion expansion.

But those plans may take longer to come together after the NDP denied not to grant Methanex any funding under a program aimed at diversifying the program.

It’s a move that doesn’t surprise the mayor.

“It’s just massively disappointing that we’re seeing these investments being directed towards Calgary and Edmonton, mostly from this government,” said Ted Clugston.

Instead, Pembina Pipeline and Inter Pipeline will split $500 million to build three new propane processing facilities near Edmonton.

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“The NDP have assured me that they will be making logical decisions and not partisan, but we all around here knew that these projects would probably go to close to the Edmonton area and they have,” Clugston added.

Economic development minister, Deron Bilous, said thousands of jobs will be created, both during the construction phase and once the projects are complete.

“What we’re doing is investing in Alberta’s future by adding value to a product that we have,” he said over the phone from Edmonton.

“This would be a game changer for the city of Medicine Hat,” Clugston said. “That expansion, just in the construction jobs alone, for about two years, they’re talking between 500-1000 construction jobs.”

Kevin Henderson with Methanex said they were optimistic about receiving a portion of the funding.

“Today there is no support available for our project,” he said. “So this might change in the future and certainly we’ll continue to work with government to see if there will be.”

Henderson said the company is still considering the expansion, but notes a few things need to align first.

“We need a secure, long-term supply of natural gas and we think that gas going forward in the province is going to be available at a reasonable price,” he said. “We need to have suitable logistics to move the product to Asia and we’re looking for a suitable partner.”

All the city can do is wait and hope the expansion plans come together.

But Clugston is questioning whether it’s time to start considering Medicine Hat as the ‘forgotten corner’ again.

“I would like to officially declare that we’re not,” he said. “But I’m going to perhaps start saying that again.”