IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Feb 2016 | Removal date: open ended
Still in force

Financial grant

On February 1, 2016 the government of Alberta unveiled a new Petrochemicals Diversification Program. The program will encourage companies to invest in the development of new Alberta petrochemical facilities by providing royalty credits.
 
According to the official announcement, 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 government expects that that the '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.
 
The government noted in a subsequent elaboration on the program that "there is no preference for Alberta-based or Canada-based proponents, it is not part of the initial screening criteria, nor part of any of the seven evaluation criteria under the program."

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

341 Basic organic chemicals
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290511 Methanol (methyl alcohol)
290512 Propan1ol (propyl alcohol) and propan2ol (isopropyl alcohol)
290513 Butan1ol (nbutyl alcohol)
290516 Octanol (octyl alcohol) and isomers thereof
290517 Dodecan1ol (lauryl alcohol), hexadecan1ol (cetyl alcohol) and octadecan1ol (stearyl alcohol)
290519 Other
290531 Ethylene glycol (ethanediol)
290532 Propylene glycol (propane1,2diol)
290539 Other
290543 Mannitol
290544 Dglucitol (sorbitol)
290549 Other
290559 Other
2908 Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenolalcohols.
290811 Pentachlorophenol (ISO)
290819 Other
2912 Aldehydes, whether or not with other oxygen function; cyclic polymers of aldehydes; paraformaldehyde.
291211 Methanal (formaldehyde)
291219 Other
291241 Vanillin (4hydroxy3methoxybenzaldehyde)
2922 Oxygenfunction aminocompounds.
292211 Monoethanolamine and its salts
292212 Diethanolamine and its salts
292213 Triethanolamine and its salts
292219 Other
292239 Other
292249 Other
292250 Aminoalcoholphenols, aminoacidphenols and other amino compounds with oxygen function
2929 Compounds with other nitrogen function.
292910 Isocyanates
292990 Other
345 Miscellaneous basic chemical products
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290545 Glycerol
347 Plastics in primary forms
3908 Polyamides in primary forms.
390810 Polyamide6, 11, 12, 6,6, 6,9, 6,10 or 6,12
390890 Other
352 Pharmaceutical products
2922 Oxygenfunction aminocompounds.
292241 Lysine and its esters; salts thereof
292242 Glutamic acid and its salts

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