Alberta province, Canada's petrochemical industry hub plans to unveil its economic recovery plan this month. The most anticipated part of the project is the province's Petrochemical Diversification Program (PDP). The petrochemical sector contributed to C$16 billion ($11.8 billion) in Alberta's economy and employs 30,000 people, the province's Ministry of Natural Gas and Electricity said.
The province is rich in oil and gas resources. However, the lack of downstream processors made operators burn ethane in the Alberta energy pipeline system. According to Bob Masterson, the CEO of the Chemistry Industry Association of Canada (CIAC), the volume of burned ethane could feed up to four global scale crackers.
Pembina's polypropylene project near Edmonton, KPIC's PDH/PP project, and Dow's ethylene capacity expansion project were expected to provide more outlets for Alberta's upstream output. However, the coronavirus pandemic hampers those projects with delays. The PDP is expected to improve this situation.
The Alberta government is currently reviewing applications for the second round of PDP. It plans to issue C$650 million ($478.1 million) financial incentives under PDP round 1 and 2 that would support C$11 billion ($8.1 billion) worth of new petrochemical projects.
Alberta's petrochemical ambition, however, is facing higher carbon taxation. Carbon taxes in Canada have increased from C$20 ($14.7) a ton in 2019 to C$30 ($22.1) in April 2020. It will rise further to C$40 ($29.4) in April 2021 and C$50 ($36.8) in April 2022.
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Published on June 15, 2020 4:26 PM (GMT+8)Last Updated on June 15, 2020 4:26 PM (GMT+8)
