Alberta chooses 2 petrochemical plants for $500M in royalty credits
The Alberta government is pledging half a billion dollars in royalty credits to two petrochemical projects. One is planned for an industrial area north of Edmonton and another is planned for an area east of the city.
Energy Minister Marg McCuaig-Boyd says the projects to convert propane into higher-value plastic or plastic feedstock will diversify the economy and provide thousands of construction jobs.
Both projects had previously been announced by their Calgary-based pipeline company recipients.
Pembina Pipeline is to receive up to $300 million in royalty credits for its proposed integrated propylene and polypropylene facility in Sturgeon County to be built for about $4 billion. In April, it announced a joint feasibility study on the project with partner Petrochemical Industries Company, a subsidiary of the Kuwait Petroleum Corp.
Inter Pipeline is to receive up to $200 million in credits for its proposed $1.85-billion propylene facility in Strathcona County, a project it inherited when it bought Williams Canada in September.
The government says its royalty credits will only be provided after construction is complete and a facility is operating.
© 2016 The Canadian Press