Alberta government’s aggressive strategy to restart natural gas sector welcomed by Albertans
The Alberta Petrochemicals Incentive Program (APIP), part of Alberta’s Recovery Plan, will help attract billions in petrochemical project investments and continue to diversify the province’s economy while drawing directly on our abundant reserves of natural gas. The goal is to aggressively compete with several jurisdictions across Asia, the Middle East, and those in the Gulf of Mexico in the United States, many of which also offer similar incentives for petrochemical manufacturers, to become a global destination for petrochemical investment.
The program is one of the key pillars of the Natural Gas Vision and Strategy, which outlined the province’s goal of becoming a top global producer of petrochemicals. According to Alberta’s Industrial Heartland Association, there is an opportunity to grow Alberta’s petrochemical sector by more than $30 billion by 2030, resulting in more than 90,000 direct and indirect jobs over the construction and operations of new facilities, and more than $10 billion in revenue for the Government of Alberta from corporate and personal income taxes.
To encourage additional investment in the sector, Invest Alberta and Alberta international offices will be courting petrochemical companies and investors by highlighting the many benefits of investing in Alberta’s growing petrochemical industry. Hydrogen-producing facilities will also be eligible for APIP, ensuring continued interest from investors in the province’s nascent hydrogen economy.
“Today we’re adding another incentive to Alberta’s already world-class opportunities for petrochemical development. On top of our existing petrochemical producers and all the companies that feed in and support them, we have a multi-generational supply of natural gas, an experienced workforce, and one of the lowest tax rates in North America. By launching this program, Alberta moves towards achieving the goal of becoming one of the most attractive investment opportunities for petrochemicals in the world.”Dale Nally, Associate Minister of Natural Gas and Electricity
There is no cap to the program, but the government will report on expected costs each fiscal year, based on applications received and projects approved.
Full details on the eligibility and requirements for projects are available on alberta.ca, where companies can also register to begin the application process.
Alberta is already among Canada’s largest hubs for petrochemicals manufacturing, and global demand for petrochemical derived products is expected to continue increasing.