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Alberta takes significant step toward diversifying economy

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Staff writer ▼ | February 2, 2016
The new Petrochemicals Diversification Program should encourage companies to invest in the development of new Alberta petrochemical facilities by providing royalty credits.
Alberta
Canada   To support the construction of petrochemical facilities
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The program is expected to support the construction of several petrochemical facilities that use methane or propane to produce the materials for products that include plastics, detergents and textiles.

The benefits of this program are significant to Alberta workers and their families. It is expected these new facilities could create up to 3,000 new jobs during construction, as well as more than 1,000 jobs once operation begins, and attract between $3 billion and $5 billion worth of investment.

The Government of Alberta will award royalty credits to select petrochemical facilities through a competitive application process. The total amount of the program is $500 million.

Credits will be awarded once approved projects are completed and feedstock consumption begins.

While petrochemical facilities do not directly benefit from royalty credits, as they do not pay royalties, the credits earned by an approved facility can be traded or sold to an oil or natural gas producer. This producer would use these credits to reduce their royalty payments to government.

Application information will be available at www.energy.alberta.ca on February 4, 2016 and will include eligibility criteria and information about the competitive selection process.

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