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How natural gas supports one of Canada’s largest manufacturing sectors

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Worker inspecting parts from plastic injection moulding machine in plastics factory. Getty Images photo

From the Canadian Energy Centre

By Deborah Jaremko

‘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. 

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Addictions

New RCMP program steering opioid addicted towards treatment and recovery

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News release from Alberta RCMP

Virtual Opioid Dependency Program serves vulnerable population in Red Deer

Since April 2024, your Alberta RCMP’s Community Safety and Well-being Branch (CSWB) has been piloting the Virtual Opioid Dependency Program (VODP) program in Red Deer to assist those facing opioid dependency with initial-stage intervention services. VODP is a collaboration with the Government of Alberta, Recovery Alberta, and the Alberta RCMP, and was created to help address opioid addiction across the province.

Red Deer’s VODP consists of two teams, each consisting of a police officer and a paramedic. These teams cover the communities of Red Deer, Innisfail, Blackfalds and Sylvan Lake. The goal of the program is to have frontline points of contact that can assist opioid users by getting them access to treatment, counselling, and life-saving medication.

The Alberta RCMP’s role in VODP:

  • Conducting outreach in the community, on foot, by vehicle, and even UTV, and interacting with vulnerable persons and talking with them about treatment options and making VODP referrals.
  • Attending calls for service in which opioid use may be a factor, such as drug poisonings, open drug use in public, social diversion calls, etc.
  • Administering medication such as Suboxone and Sublocade to opioid users who are arrested and lodged in RCMP cells and voluntarily wish to participate in VODP; these medications help with withdrawal symptoms and are the primary method for treating opioid addiction. Individuals may be provided ongoing treatment while in police custody or incarceration.
  • Collaborating with agencies in the treatment and addiction space to work together on client care. Red Deer’s VODP chairs a quarterly Vulnerable Populations Working Group meeting consisting of a number of local stakeholders who come together to address both client and community needs.

While accountability for criminal actions is necessary, the Alberta RCMP recognizes that opioid addiction is part of larger social and health issues that require long-term supports. Often people facing addictions are among offenders who land in a cycle of criminality. As first responders, our officers are frequently in contact with these individuals. We are ideally placed to help connect those individuals with the VODP. The Alberta RCMP helps those individuals who wish to participate in the VODP by ensuring that they have access to necessary resources and receive the medical care they need, even while they are in police custody.

Since its start, the Red Deer program has made nearly 2,500 referrals and touchpoints with individuals, discussing VODP participation and treatment options. Some successes of the program include:

  • In October 2024, Red Deer VODP assessed a 35-year-old male who was arrested and in police custody. The individual was put in contact with medical care and was prescribed and administered Suboxone. The team members did not have any contact with the male again until April 2025 when the individual visited the detachment to thank the team for treating him with care and dignity while in cells, and for getting him access to treatment. The individual stated he had been sober since, saying the treatment saved his life.

 

  • In May 2025, the VODP team worked with a 14-year-old female who was arrested on warrants and lodged in RCMP cells. She had run away from home and was located downtown using opioids. The team spoke to the girl about treatment, was referred to VODP, and was administered Sublocade to treat her addiction. During follow-up, the team received positive feedback from both the family and the attending care providers.

The VODP provides same-day medication starts, opioid treatment transition services, and ongoing opioid dependency care to people anywhere in Alberta who are living with opioid addiction. Visit vodp.ca to learn more.

“This collaboration between Alberta’s Government, Recovery Alberta and the RCMP is a powerful example of how partnerships between health and public safety can change lives. The Virtual Opioid Dependency Program can be the first step in a person’s journey to recovery,” says Alberta’s Minister of Mental Health and Addiction Rick Wilson. “By connecting people to treatment when and where they need it most, we are helping build more paths to recovery and to a healthier Alberta.”

“Part of the Alberta RCMP’s CSWB mandate is the enhancement of public safety through community partnerships,” says Supt. Holly Glassford, Detachment Commander of Red Deer RCMP. “Through VODP, we are committed to building upon community partnerships with social and health agencies, so that we can increase accessibility to supports in our city and reduce crime in Red Deer. Together we are creating a stronger, safer Alberta.”

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Alberta

Alberta Premier Danielle Smith Discusses Moving Energy Forward at the Global Energy Show in Calgary

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From Energy Now

At the energy conference in Calgary, Alberta Premier Danielle Smith pressed the case for building infrastructure to move provincial products to international markets, via a transportation and energy corridor to British Columbia.

“The anchor tenant for this corridor must be a 42-inch pipeline, moving one million incremental barrels of oil to those global markets. And we can’t stop there,” she told the audience.

The premier reiterated her support for new pipelines north to Grays Bay in Nunavut, east to Churchill, Man., and potentially a new version of Energy East.

The discussion comes as Prime Minister Mark Carney and his government are assembling a list of major projects of national interest to fast-track for approval.

Carney has also pledged to establish a major project review office that would issue decisions within two years, instead of five.

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