Alberta
How natural gas supports one of Canada’s largest manufacturing sectors
Worker inspecting parts from plastic injection moulding machine in plastics factory. Getty Images photo
From the Canadian Energy Centre
‘When you think about the demand for more sustainable outcomes: clean air, clean water, clean energy, safe, nutritious, abundant food and electric vehicles, that’s more and more and more chemistry’
Canada’s chemical industry sold a record $72.7 billion of product last year amid recovery from COVID-19 and strong consumer demand, according to the Chemistry Industry Association of Canada (CIAC).
Natural gas is a key input to the chemistry sector, the broad term that refers to manufacturing a myriad of products used in everyday items from plastics to agriculture and pharmaceuticals.
“Chemistry products go into 95 per cent of finished goods. It’s an important sector,” says CIAC president Bob Masterson.
“It’s a sector that can grow as long as we fancy improving our lives and building a better world for tomorrow.”
Chemicals in Canada
Canada’s chemistry industry is the country’s fourth largest manufacturing sector by value of sales after food ($147 billion), transportation equipment ($119 billion), and petroleum/coal products ($118 billion).
It is primarily centered in Ontario, Alberta and Quebec.
The CIAC publishes an annual report on the sector’s activity using Statistics Canada data, separated into two categories: chemicals overall, and industrial chemicals.
Chemicals overall includes manufacturing of soaps, cleaning compounds, paints, coatings and adhesives, pesticides and fertilizers, pharmaceuticals, rubbers and synthetic fibres, and basic chemicals.
Industrial chemicals refers to the manufacturing of intermediate products used as inputs by industries including plastic and rubber products, forest products, transportation equipment, clothing, perfume and cosmetics, construction and pharmaceuticals.
Global Growth
According to Vantage Market Research, the global chemical market was valued at US$584 billion in 2022. It’s expected to grow by more than 55 per cent in the coming years to reach US$917 billion by 2030.
This isn’t just driven population growth, Masterson says.
“When you think about the demand for more sustainable outcomes: clean air, clean water, clean energy, safe, nutritious, abundant food and electric vehicles, that’s more and more and more chemistry,” he says.
“Some of the predictions are that the volumes of chemistry will double in the next 20 years. Canada and Alberta in particular are exceptionally well positioned to help meet future market demand for these products. The demand is not going away. There’s no question about that.”
Jobs
In 2022, Canada’s chemicals sector directly employed 90,800 people, or approximately the population size of Sudbury, Ontario. The industry paid about $7 billion in salary and wages.
That’s the direct impact of employment in the chemistry sector, but the CIAC estimates the full benefit to Canadians to be much higher as a result of indirect economic activity it supports.
CIAC estimates that every job in Canada’s chemistry sector creates another five indirect jobs in other parts of the economy. This means the sector supported 454,000 jobs across Canada in 2022.
Industrial chemicals alone directly employed 17,100 people and indirectly supported 85,600 jobs in the broader Canadian economy last year, the CIAC says.
Rising Trade
At a value of $72.7 billion, Canada’s overall chemical industry sales were their highest ever in 2022 – a 30 per cent increase compared to 2019, prior to the COVID-19 pandemic.
Industrial chemicals sales reached a record $34.2 billion, a 32 per cent increase compared to 2019.
Exports also increased last year, rising to a value of $52.8 billion compared to $45.9 billion in 2021. Of that, the sector exported $24.8 billion of industrial chemicals, up from $22.5 billion the previous year.
The United States is Canada’s main customer for chemical exports, representing 76 per cent of exports or $40.1 billion in 2022. The next largest export markets are China ($1.86 billion), the Netherlands ($1.7 billion), and the United Kingdom ($1.1 billion).
The Canada Advantage
Canada has distinct advantages as a chemical manufacturer and exporter including growing access to global markets, CIAC says.
In Alberta, the main advantage is access to low-cost natural gas resources – specifically valuable natural gas liquids like ethane, propane and butane.
“The rich abundance of natural gas liquids that come out of the ground when we drill for natural gas let Alberta be a low-cost chemistry producer despite being pretty much the only large chemistry industry worldwide that’s not on tidewater,” Masterson says.
Responsible Care
Since 1985, Canada’s chemistry industry has operated under an initiative called Responsible Care that encourages companies to innovate for safer and greener products.
CIAC reports that Responsible Care is now practiced in 73 countries and by 96 of the 100 largest chemical producers in the world.
Since 2005, CIAC members have reduced CO2 equivalent emissions by 13 per cent; reduced sulphur dioxide emissions by 94 per cent, and virtually eliminated large scale safety incidents. Since 2012, CIAC members have also reduced net water consumption by 13 per cent.
“We’re not standing in place,” Masterson says.
Alberta’s government is engaging with Albertans on increasing speed limits on rural highways.
Starting Nov. 7, Albertans can share their views on modernizing speed limits on divided highways through an online survey running until Dec. 12. The survey will ask how Albertans view raising the speed limit by 10 km/h on various highways from 110 km/h to 120 km/h.
“Alberta’s government is investigating how to safely increase speed limits on divided highways, and if Albertans support increasing speed limits. We are investing more than $1.5 billion this year alone to improve highway safety and upgrade infrastructure across the province. We want Albertans to be able to drive the speed limit that the highways are designed for. Modern vehicles combined with public awareness mean we can explore higher speed limits.”
The survey will provide Albertans with the opportunity to provide input on which highways they would prioritize having a speed limit increase, their views on restricting commercial trucks from using the far-left lane on highways with three or more lanes and any other feedback that would improve driving experiences on provincial highways.
Following a review of the survey results, Alberta’s government plans to conduct a mini-trial of a 120 km/h speed limit to assess the impacts of higher speed limits on divided highways. The trial will include strong monitoring to assess driving behaviour.
Alberta’s government reminds motorists to slow down and drive to the conditions. Speed limits are set for ideal conditions. When roads are wet, icy or when there is reduced visibility, motorists should slow down.
Quick facts
- Alberta’s provincial highway network includes more than 64,000 lane kilometres of highways, about 11,700 lane kilometres of which are divided.
- The posted speed limits of Alberta’s divided highways range from 100 to 110 km/h, although the posted speed limits on segments passing through cities, towns and First Nation lands can be as low as 50 km/h due to factors such as signalized intersections, pedestrians and local access.
Related information
- The survey is available online.
A new Class Size and Complexity Cabinet Committee has been struck to address classroom challenges.
Taking action on class size and complexity
Classrooms in Alberta continue to grow and are becoming increasingly complex, and immediate action is needed to address these issues in the public education system. To meet these issues head on, the Class Size and Complexity Cabinet Committee has been created. The cabinet committee will help guide government policy and deploy resources to deal with class sizes and classroom complexity.
“We are committed to providing world-class education, and we’re building schools and funding education at a rate unprecedented in this province. This committee will help us address the concerns of teachers, parents and students around class sizes and complexity.”
Throughout November, Alberta’s government will continue work with school boards to collect data on class sizes and classroom composition. The cabinet committee will use this data to direct resources to the classrooms that need it the most. Starting in January, this data will be made available and released annually.
The Class Size and Complexity Cabinet Committee will be co-chaired by the Premier of Alberta and the Minister of Education and Childcare. It will also include non-voting members representing school boards, administrators and a teacher representative of the ATA. The committee will also hear from school boards, academic experts, teachers, educational assistants, complex needs specialists and parents to inform its decisions and guide this vital work.
“We heard teacher concerns, and we are providing solutions. The Class Size and Complexity Cabinet Committee will help us take immediate action and ensure teachers and students are given the support they need to succeed.”
In June 2025, Alberta’s government established the Aggression and Complexity in Schools Action Team to provide advice on addressing classroom complexity. The report has been received and will be released soon. Over the coming months, the cabinet committee will start rolling out solutions informed by the action team’s recommendations. In addition, the committee will guide the creation of a new inclusive education policy framework.
“The work of this committee will support teachers in responding to the growing complexity in our classrooms. We will ensure that the voices of the contributors to the initial work guide
solutions that truly improve the educational experience for students and the educators who serve them.”
“I appreciate the government’s recognition of the impact of classroom complexity and their commitment to working collaboratively for improvement. Supporting teachers ultimately improves classroom conditions and student outcomes.”
Using data collected, this cabinet committee will also guide Alberta’s government in executing its commitment to hire 3,000 new teachers and 1,500 new educational assistants over the next three years. They will also assist in identifying and prioritizing where new schools and modulars should be built, advancing the government’s commitment to invest $8.6 billion to build 130 new schools, and provide 109 modular classrooms in the growing communities that need them urgently.
Quick facts
- Members of the Class Size and Complexity Cabinet Committee include:
- Danielle Smith, Premier of Alberta
- Demetrios Nicolaides, Minister of Education and Childcare
- Jason Nixon, Minister of Assisted Living and Social Services
- Rick Wilson, Minister of Mental Health and Addiction
- Searle Turton, Minister of Child and Family Services
- Lynnette Anderson, chief superintendent, Edmonton Catholic Schools
- Nicole Buchanan, chair, Red Deer Public Schools
- Marilyn Dennis, former president of Alberta School Boards Association
- Mike McMann, superintendent, Fort Vermilion Schools and President, College of Alberta School Superintendents
- Joanne Pitman, chief superintendent, Calgary Board of Education
- Dr. Elissa Corsi, Alberta Teachers’ Association
- Only Cabinet members are voting members. Additional guests will be invited to attend and share their expertise at the discretion of the chairs.
- School boards will be required to submit data on Alberta classrooms by Nov. 24.
Danish Cows Collapsing Under Mandatory Methane-Reducing Additive
U.S. Charges Three More Chinese Scholars in Wuhan Bio-Smuggling Case, Citing Pattern of Foreign Exploitation in American Research Labs
US Eating Canada’s Lunch While Liberals Stall – Trump Admin Announces Record-Shattering Energy Report
Alberta government’s plan will improve access to MRIs and CT scans
-
Business2 days agoCarney’s Deficit Numbers Deserve Scrutiny After Trudeau’s Forecasting Failures
-
Business2 days agoHere’s what pundits and analysts get wrong about the Carney government’s first budget
-
Alberta1 day ago
Tell the Province what you think about 120 km/h speed limit on divided highways
-
International2 days agoKazakhstan joins Abraham Accords, Trump says more nations lining up for peace
-
Business2 days agoCarney budget doubles down on Trudeau-era policies
-
Automotive2 days agoElon Musk Poised To Become World’s First Trillionaire After Shareholder Vote
-
National14 hours agoNew Canadian bill would punish those who deny residential indigenous schools deaths claims
-
Business1 day agoBill Gates Gets Mugged By Reality