Business
New programs to promote diversification in Alberta’s energy sector

Moving towards a more diversified energy sector
June 11, 2018 Media inquiries
New jobs and more private investment will be just some of the benefits of a more diversified energy sector, thanks to three new incentive programs created through the Energy Diversification Act.
The legislation, passed June 6, includes three new programs that provide a combination of royalty credits, grants and loan guarantees designed to encourage energy diversification, like petrochemicals and partial upgrading.
“Supporting energy diversification means supporting good jobs for working families and Albertans. We’re acting to ensure Alberta is competitive for major private investments and to build an economy to last. This is an exciting moment to push Alberta’s energy sector forward.”
Margaret McCuaig-Boyd, Minister of Energy
In total the $2-billion investment is available for private industry to apply for under:
Round 2 of the Petrochemicals Diversification Program
The Petrochemicals Feedstock Infrastructure Program
The Partial Upgrading Program
Industry can submit applications for the Partial Upgrading Program until Sept. 4, and can submit applications to the Petrochemicals Diversification Program and Petrochemicals Feedstock Infrastructure Program until Oct. 1. Evaluation will begin once the application seasons close. A decision on successful applicants is scheduled for late 2018.
The three programs are estimated to attract more than $10 billion in private investment, support roughly 8,000 construction jobs and create hundreds more operational jobs.
Petrochemicals
Petrochemicals are Alberta’s largest manufacturing industry, supporting roughly 7,600 skilled jobs and $8.2 billion in exports every year.
Round 2 of the Petrochemicals Diversification Program will build on the success of the first round and expand its scope. Applications will now be accepted that involve the use of ethane (used to manufacture products like plastic), as well as methane (used primarily as fuel, and to manufacture chemicals like ammonia) and propane (for heat and fuel). These are petrochemical feedstocks derived from natural gas. Applications to increase production at existing facilities will now also be allowed, after being excluded in the first round of the program.
The first round of this program in 2016 led directly to Inter Pipeline’s final investment decision on its $3.5-billion propane-to-polypropylene complex which is under construction in the Industrial Heartland near Fort Saskatchewan. At the peak of construction, an estimated 2,300 direct full-time jobs will be created and, once complete, the facilities will employ 180 people. A second proposed project from Canada Kuwait Petrochemical Corporation is undergoing front-end engineering design work for its project. A final investment decision is expected by early 2019.
Feedstock development
In order to ensure Alberta continues to have a strong supply of the building blocks needed for petrochemicals manufacturing, the Petrochemical Feedstock Infrastructure Program was created.
It will encourage industry to move forward on the facilities and infrastructure needed to capture more natural gas liquids required for value-added development.
These developments could include new natural gas processing facilities, smaller projects built closer to wellheads or straddle plants, facilities that are built along major natural gas pipelines that can extract certain components during transportation.
Partial Upgrading
Partial upgrading is a process that reduces the thickness of oil sands bitumen so it can flow through pipelines more easily, without having to be blended with diluent (a thinning agent such as naphtha). This process increases the volume of the bitumen product as well increasing its value.
Partial upgrading would enhance oil sands industry competitiveness by reducing industry costs, increasing pipeline capacity and enabling more refineries to process Alberta bitumen products. It would not limit future opportunities for full refining within Alberta.
The Partial Upgrading Program will support projects to develop this emerging technology in Alberta.
In May, industry was given an opportunity to review the draft application guidelines to ensure they were compatible with industry needs. More than 30 responses were received from companies across the three programs, foreshadowing a strong level of interest among investors.
Business
Most Canadians say retaliatory tariffs on American goods contribute to raising the price of essential goods at home

- 77 per cent say Canada’s tariffs on U.S. products increase the price of consumer goods
- 72 per cent say that their current tax bill hurts their standard of living
A new MEI-Ipsos poll published this morning reveals a clear disconnect between Ottawa’s high-tax, high-spending approach and Canadians’ level of satisfaction.
“Canadians are not on board with Ottawa’s fiscal path,” says Samantha Dagres, communications manager at the MEI. “From housing to trade policy, Canadians feel they’re being squeezed by a government that is increasingly an impediment to their standard of living.”
More than half of Canadians (54 per cent) say Ottawa is spending too much, while only six per cent think it is spending too little.
A majority (54 per cent) also do not believe federal dollars are being effectively allocated to address Canada’s most important issues, and a similar proportion (55 per cent) are dissatisfied with the transparency and accountability in the government’s spending practices.
As for their own tax bills, Canadians are equally skeptical. Two-thirds (67 per cent) say they pay too much income tax, and about half say they do not receive good value in return.
Provincial governments fared even worse. A majority of Canadians say they receive poor value for the taxes they pay provincially. In Quebec, nearly two-thirds (64 per cent) of respondents say they are not getting their money’s worth from the provincial government.
Not coincidentally, Quebecers face the highest marginal tax rates in North America.
On the question of Canada’s response to the U.S. trade dispute, nearly eight in 10 Canadians (77 per cent) agree that Ottawa’s retaliatory tariffs on American products are driving up the cost of everyday goods.
“Canadians understand that tariffs are just another form of taxation, and that they are the ones footing the bill for any political posturing,” adds Ms. Dagres. “Ottawa should favour unilateral tariff reduction and increased trade with other nations, as opposed to retaliatory tariffs that heap more costs onto Canadian consumers and businesses.”
On the issue of housing, 74 per cent of respondents believe that taxes on new construction contribute directly to unaffordability.
All of this dissatisfaction culminates in 72 per cent of Canadians saying their overall tax burden is reducing their standard of living.
“Taxpayers are not just ATMs for government – and if they are going to pay such exorbitant taxes, you’d think the least they could expect is good service in return,” says Ms. Dagres. “Canadians are increasingly distrustful of a government that believes every problem can be solved with higher taxes.”
A sample of 1,020 Canadians 18 years of age and older was polled between June 17 and 23, 2025. The results are accurate to within ± 3.8 percentage points, 19 times out of 20.
The results of the MEI-Ipsos poll are available here.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
Business
B.C. premier wants a private pipeline—here’s how you make that happen

From the Fraser Institute
By Julio Mejía and Elmira Aliakbari
At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”)
The Eby government has left the door (slightly) open to Alberta’s proposed pipeline to the British Columbia’s northern coast. Premier David Eby said he isn’t opposed to a new pipeline that would expand access to Asian markets—but he does not want government to pay for it. That’s a fair condition. But to attract private investment for pipelines and other projects, both the Eby government and the Carney government must reform the regulatory environment.
First, some background.
Trump’s tariffs against Canadian products underscore the risks of heavily relying on the United States as the primary destination for our oil and gas—Canada’s main exports. In 2024, nearly 96 per cent of oil exports and virtually all natural gas exports went to our southern neighbour. Clearly, Canada must diversify our energy export markets. Expanded pipelines to transport oil and gas, mostly produced in the Prairies, to coastal terminals would allow Canada’s energy sector to find new customers in Asia and Europe and become less reliant on the U.S. In fact, following the completion of the Trans Mountain Pipeline expansion between Alberta and B.C. in May 2024, exports to non-U.S. destinations increased by almost 60 per cent.
However, Canada’s uncompetitive regulatory environment continues to create uncertainty and deter investment in the energy sector. According to a 2023 survey of oil and gas investors, 68 per cent of respondents said uncertainty over environmental regulations deters investment in Canada compared to only 41 per cent of respondents for the U.S. And 59 per cent said the cost of regulatory compliance deters investment compared to 42 per cent in the U.S.
When looking at B.C. specifically, investor perceptions are even worse. Nearly 93 per cent of respondents for the province said uncertainty over environmental regulations deters investment while 92 per cent of respondents said uncertainty over protected lands deters investment. Among all Canadian jurisdictions included in the survey, investors said B.C. has the greatest barriers to investment.
How can policymakers help make B.C. more attractive to investment?
At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”), Bill C-48 (which effectively banned large oil tankers off B.C.’s northern coast, limiting access to Asian markets), and the proposed cap on greenhouse gas (GHG) emissions in the oil and gas sector (which will likely lead to a reduction in oil and gas production, decreasing the need for new infrastructure and, in turn, deterring investment in the energy sector).
At the provincial level, the Eby government should abandon its latest GHG reduction targets, which discourage investment in the energy sector. Indeed, in 2023 provincial regulators rejected a proposal from FortisBC, the province’s main natural gas provider, because it did not align with the Eby government’s emission-reduction targets.
Premier Eby is right—private investment should develop energy infrastructure. But to attract that investment, the province must have clear, predictable and competitive regulations, which balance environmental protection with the need for investment, jobs and widespread prosperity. To make B.C. and Canada a more appealing destination for investment, both federal and provincial governments must remove the regulatory barriers that keep capital away.
-
COVID-194 hours ago
FDA requires new warning on mRNA COVID shots due to heart damage in young men
-
Business2 hours ago
Carney’s new agenda faces old Canadian problems
-
Indigenous3 hours ago
Internal emails show Canadian gov’t doubted ‘mass graves’ narrative but went along with it
-
Bruce Dowbiggin5 hours ago
Eau Canada! Join Us In An Inclusive New National Anthem
-
Bruce Dowbiggin2 days ago
The Covid 19 Disaster: When Do We Get The Apologies?
-
Business2 days ago
Cannabis Legalization Is Starting to Look Like a Really Dumb Idea
-
Media2 days ago
CBC journalist quits, accuses outlet of anti-Conservative bias and censorship
-
Business2 days ago
Carney government should recognize that private sector drives Canada’s economy