The Petrochemicals Diversification Program was created as part of the Alberta government’s continued action to create jobs, attract investment and diversify Alberta’s economy. It was designed to encourage companies to invest in the development of new Alberta petrochemical facilities by providing up to $500 million in incentives through royalty credits.
Building on Alberta's large supply of propane, the programcapitalizes on the growing global demand for related higher value products and promotes greater energy processing in Alberta.
Two projects have been approvedunder the program representing more than $6 billion in new private investment in Alberta, up to 4,200 new jobs during construction of new petrochemical facilities and more than 240 full-time jobs once operations begin:
- Calgary-based Inter Pipeline was approved to receive up to $200 million under the program. The company made a final investment decision in December, 2017 that will see two new facilities built in the Industrial Heartland, near Fort Saskatchewan, that will process propane into value-added plastics products. Learn more from Inter Pipeline's corporate video.
- Canada Kuwait Petrochemical Corporation (formerly Pembina/PIC)’s integrated propane dehydrogenation and polypropylene facilities were approved to receive up to $300 million in royalty credits under the program. The company has begun front-end engineering design work for its project and is expected to make a final investment decision in late 2018.
The Petrochemicals Diversification Program was announcedon February 1, 2016 and received 16 applications locally and from across the globe, representing more than $20 billion in potential new investment interest in Alberta’s petrochemicals industry. These applications were reviewed with a third-party monitor to ensure a fair and transparent evaluation process.
This program is one of the three pillars of The Energy Diversification Act, tabled in the legislature on March 8. The other two are the petrochemical feedstock infrastructure initiative and the Partial Upgrading Program.