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Alberta

With a boost of up to $200 million from the Province, Inter Pipeline Ltd. investing $600 million in new petrochemical plant east of Edmonton

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Premier Notley announces private investment in a new petrochemical upgrading facility alongside David Chappell (r), Patrick Bergen and Pyramid Prefab Piping staff.

From the Province of Alberta

Made-in-Alberta plan attracts new jobs, investment

Alberta is taking a significant step forward on a more diversified economy with a project that supports hundreds of jobs and adds more value to our energy resources.

If the plan is finalized, Inter Pipeline Ltd. would invest about $600 million in a new petrochemical upgrading facility that would produce more valuable consumer products derived from propane, including acrylic acid that is used in many everyday consumer products. This major private investment is unlocked by support from Premier Rachel Notley’s Made-in-Alberta energy diversification strategy.

The project would build on the company’s supply and knowledge of propylene, a product it already produces at the company’s other petrochemical facilities east of Edmonton. Construction would create about 600 jobs with another 50 long-term positions supporting the local economy once the facility is fully up and running.

“For decades, Albertans settled for less while new jobs and investment went south of the border. So we’re grabbing the bull by the horns, fighting for a Made-in-Alberta plan that represents the single largest energy diversification effort since the days of Peter Lougheed. We’re proud to support upgrading projects like Inter Pipeline’s because they mean more good jobs and top dollar for the energy resources that belong to all Albertans.”

Rachel Notley, Premier

Inter Pipeline’s supply of propylene, a gas that results from adding value to raw propane, creates the opportunity to further leverage Alberta’s natural resource strengths and extend the value chain. By producing acrylic acid used in things like adhesives, floor polishes and paints, this project increases the likelihood of attracting investments in more manufacturing facilities in the future.

“Alberta’s abundance of natural resources has positioned Inter Pipeline to invest in opportunities like this that build on our strengths to extend the value chain and make products that are in demand around the world. We want to commend this government for fostering the environment for companies like ours to grow and create jobs, while competitively positioning our business in the world market.”

David Chappell, senior vice-president, Petrochemical Development, Inter Pipeline Ltd.

The announcement was made at Pyramid Prefab Piping, one of the hundreds of companies across the province benefiting from the Made-in-Alberta strategy. As a manufacturer that employs about 45 people in Calgary, Pyramid was contracted to build key components for Inter Pipeline’s project already under construction.

“We’re pleased to see the government’s vision for the future is focused on jobs and diversification, which will lead to more work for companies like ours to build the components needed for energy upgrading projects. This growth means we can put even more skilled tradespeople to work in the Calgary region and contribute even more to the oil and gas sector.”

Patrick Bergen, president, Pyramid Prefab Piping

If finalized by Inter Pipeline, the private investment would be unlocked by provincial support of up to $70 million in future royalty credits under the Petrochemicals Diversification Program, which was first developed in early 2016.

Quick facts

  • Inter Pipeline’s acrylic acid and propylene derivatives facility would be in Alberta’s Industrial Heartland, northeast of Edmonton. Construction is expected to begin in 2021.
  • The facility would convert 60,000 tonnes per year of propylene and produce 80,000 tonnes per year of propylene derivatives, including acrylic acid, when operational.
  • Acrylic acid is a value-added product used to make coatings, adhesives, diapers, floor polishes and paints.
  • Roughly 50 skilled, local permanent jobs and 600 skilled trade construction jobs would be created.
  • Inter Pipeline has already been approved to receive up to $200 million in future royalty credits from the first round of the Petrochemicals Diversification Program for the construction its $3.5-billion Heartland Petrochemical Complex.

Background

Made-in-Alberta energy strategy

  • Premier Notley’s government is investing $3 billion to support energy diversification that creates jobs and adds value to our resources here at home.
  • The focus is on two key areas: partial upgrading of our bitumen and petrochemical processing that adds value to natural gas and natural gas liquids.
  • Overall, this commitment is expected to attract more than $25 billion in private-sector investment to Alberta and create more than 20,000 jobs.

Petrochemical upgrading

  • Support for the Inter Pipeline facility is provided under the petrochemical portion of the Made-in-Alberta strategy.
  • Two projects – owned by the Canada-Kuwait Petrochemical Corporation and Inter Pipeline Ltd. – were selected under the first round of this program, which was announced in 2016. The projects combined for $8 billion in private investment, creating more than 5,000 jobs.
  • The government announced a second round of support for petrochemical upgrading in 2018.
    • Nauticol’s methanol facility was previously selected under the second round of this program. The entire project is a $2-billion private investment in a plant near Grande Prairie, creating roughly 3,000 direct and indirect jobs.
  • Albertans and Canadians use dozens of products every day that are based in part on petrochemicals like those from Alberta’s growing value-added industry including:
    • polyester fabric couches, HD televisions, phones coffeemakers and computers
    • car tires, engine hoses, gas, oil, radio components and seats
    • desks, chairs, computers, carpets, cellphones and other office supplies

Partial upgrading of bitumen

  • $1 billion in grants and loan guarantees to encourage companies to invest in new or expanded bitumen-upgrading facilities.
  • Partial upgrading reduces the thickness of oil sands bitumen so it can flow through pipelines more easily, without having to be blended with diluent or as much diluent, a thinning agent. Benefits include:
    • increased prices for our resources before shipping
    • up to 30 per cent more capacity on existing pipelines
    • more world refineries capable of processing our product
    • cost savings on diluent for industry
    • fewer emissions by removing high carbon content

Energy diversification timeline

  • January 2016 – Royalty Review Advisory Panel recommended more value-add within the province, including partial upgrading
  • February 2016 – Petrochemicals Diversification Program (PDP) introduced
  • October 2016 – Energy Diversification Advisory Committee (EDAC) formed
  • December 2016 – First PDP projects awarded
  • December 2017 – Inter Pipeline finalized investment in petrochemical project
  • February 2018 – EDAC reported back, including recommendation of partial upgrading, more PDP and additional support for petrochemical feedstock infrastructure
  • March 2018 – Government launched programs through the Energy Diversification Act
  • Fall 2018 – oil price differential hit crisis point. In response, government took several actions:
    • Temporary limit on oil production
    • Doubled support for PDP
    • Began crude-by-rail negotiations
    • Appointed LNG Investment Team
    • Request for industry interest in building refining capacity
  • January 2019 – Government announced letter of intent for first partial upgrading project awarded (Value Creation Inc.)
  • February 2019 – Canada-Kuwait Petrochemical Corporation  finalized investment in petrochemical project
  • February 2019 – Premier announced crude-by-rail agreements
  • February 2019 – Nauticol awarded first project under second round of PDP

Alberta

The old paving scam is back – don’t fall for it

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August 19, 2019

 

Alberta RCMP warns property owners of paving contractor scams

Edmonton—This summer, the Alberta RCMP has received reports of several incidents involving paving scams in Western Alberta. Travelling companies, posing as legitimate contractors, offer paving or sometimes roof sealing services typically to senior citizens in rural communities. These individuals have been known to provide few details of their identity and utilize non-descript vehicles rarely bearing commercial logos.

The Alberta RCMP urges property owners to beware of out-of-town companies offering such services. The contractors claim to have leftover asphalt from previous jobs and promise to provide quality services. However, the product used is believed to be cold, recycled asphalt or a gravel and oil mixture with no lasting properties. This results in the asphalt falling apart once it is driven on. By that time, these fraudsters are long gone, disappearing with their payment before the customer realizes they have been scammed.

We would like to remind residents to exercise caution when retaining contractor services and if it sounds too good to be true, then it probably is.

Residents should be weary of any contractors who:

  • Come to your door saying they are working in the area offering a deal for leftover asphalt
  • Drive vehicles bearing no business names or logos
  • Pressure you into making a quick decision or refuse to take “no” for an answer
  • Ask for a down payment to buy materials
  • Refuse to give you a written quote with their business name, physical address and outlining the services they will provide prior to completing the work

Here a few tips to avoid falling prey to scammers:

  • Before agreeing to contract a person who comes to your door, get names of their previous customers and verify that they were satisfied with the work
  • Do some research on the company with either the Better Business Bureau in Alberta, with the Consumer Investigations Unit, with your local Rural Crime Watch or on social media site
  • Make sure to obtain a written quote from the contractor that includes the full business name, full address, phone number, GST number and provincial and municipal license numbers, if applicable
  • Ensure the quote you receive gives details such as the quantity and specifies the quality of materials being offered
  • Obtain quotes from local supplier as a form of comparison

The Alberta RCMP is working with the Alberta Consumer Investigation Unit (CIU) to counter this trend. If you or anyone you know have any information on these companies, please contact the Consumer Investigations Unit – North (north of Ponoka) at 587-985-4735 or the Consumer Investigations Unit – South (south of Ponoka) at 403-803-8229.

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Alberta

Energy Companies calling on average Canadians to make oil and gas top of mind for federal politicians

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Three of Canada’s top energy sector leaders are asking average Canadians to boost Canada’s energy industry ahead of this fall’s federal election.  The Presidents of Cenovus Energy, Canadian Natural Resources Limited, and MEG Energy have penned an “Open Letter to Canadians” urging everyone to talk to federal candidates about supporting the energy sector.

The letter makes a simple assessment of the facts surrounding energy creation worldwide and asks Canadians to back our own companies as they attempt to lead the way toward “a lower carbon future”…

Open letter to Canadians from:

Tim McKay, Canadian Natural Resources Limited,

Alex Pourbaix, Cenovus Energy,

Derek Evans, MEG Energy

We have big decisions to make as a country, and there is an opportunity for each of you to influence the outcome.

Canadians want to know what the energy sector is doing to address the global climate change challenge while working to strengthen our economy.

As energy company leaders, we believe Canada is ideally positioned to do its part to both positively impact climate change and ensure a strong and vibrant economy for the future.

This is not an ‘either’ ‘or’ conversation, it’s an ‘and’ conversation.

The world needs more energy to sustain a growing global economy that is expected to lift three billion people out of poverty in the decades ahead. We need more wind, solar and hydro, but oil and natural gas remain a large part of the mix too. This is true in even the most optimistic scenarios for the worldwide adoption of renewable energy.

The world also needs to significantly reduce greenhouse gas emissions.  But shutting down Canada’s oil industry will have little impact on global targets.  In fact, it could have the opposite effect, with higher carbon fuels replacing our lower emissions products.

A healthy Canadian oil and natural gas industry is vital in leading the way to a lower carbon future.

Made-in-Canada technologies that reduce emissions at our oil and natural gas operations could be adapted for sharing with other industries worldwide.  We are already making meaningful progress developing those solutions.

We’ve reduced the emissions intensity in the oil sands by about 30% over the past two decades, and a number of oil sands operations are producing oil with a smaller greenhouse gas impact than the global average.  We’re working to get those numbers even lower.

And Canada’s energy companies are the country’s single largest investors in clean tech.  Through organizations such as Canada’s Oil Sands Innovation Alliance (COSIA), Petroleum Technology Alliance Canada (PTAC) and the Clean Resource Innovation Network (CRIN) we are continuing to work on – and share – breakthrough technologies.

But we can’t do it alone.

And that’s why we are writing this letter.

As we head into the upcoming election, we are asking you to join us in urging Canada’s leaders of all political stripes to help our country thrive by supporting an innovative energy industry.  One that can contribute to solving the global climate change challenge and play a significant role in creating future energy solutions by developing our resources in the cleanest most responsible way possible today.

The choices we make will determine the quality of life we create for ourselves and future generations.  These choices will impact our ability to fund schools, hospitals, parks and the social programs that we as Canadians so deeply value.

This isn’t about any particular pipeline, policy or province. This is about the future of Canada.

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august, 2019

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