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Petrochemical upgrade facility receives boost from Alberta’s energy diversification strategy


March 8, 2019  


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Alberta is throwing its support behind Inter Pipeline Ltd’s new $600 million petrochemical upgrading facility that would produce valuable consumer products derived from propane like acrylic acid, that is used in many everyday consumer products.

“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,” says Premier Rachel Notley. “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.”

This major private investment is being given a lift from the province’s Made-in-Alberta $3 billion 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.

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,” says David Chappell, senior vice-president, petrochemical development, Inter Pipeline Ltd. “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.”

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,” says Patrick Bergen, president, Pyramid Prefab Piping.“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.”

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.


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