ANNOUNCEMENT 05 Dec 2016
The provincial government created the diversification program in 2016.
NUMBER OF INTERVENTIONS
In 2016 the government of Alberta launched a Petrochemicals Diversification Program to encourage companies to invest in the development of new Alberta petrochemical facilities by providing Can.$500 million (U.S.$382 million) in royalty credits. On December 5, 2016 Inter Pipeline Ltd. announced the construction of an integrated propane dehydrogenation and polypropylene plant with support from this program. The facilities, collectively referred to as the Heartland Petrochemical Complex, are estimated to cost Can.$3.5 billion. It will convert propane into 525,000 tonnes per year of polypropylene. Construction of the complex will continue in early 2018 with completion scheduled for late 2021. Inter Pipeline will benefit from Can.$200 million (U.S.$153 million) of royalty credits provided in support of the construction of the propane dehydrogenation plant, monetized over a three-year period once the complex is operational.