The UCP government has introduced a new incentive program it believes will attract billions of dollars worth of investment in the petrochemical sector, employing tens of thousands of Albertans.
The Alberta Petrochemicals Incentive Program will offer direct grants to companies that decide to invest in Alberta. Companies will qualify if their facilities are up and running by 2030.
“The sky is the limit for the benefits this industry can provide to Alberta,” Associate Minister of Natural Gas and Electricity Dale Nally said while announcing the program.
“Beginning now, we’re going to set our sights much higher.”
The new program won’t be a competition. All projects that meet requirements set out by the province will be eligible to receive funding. Those details are still being worked out, and it’s not known how much money the government will end up paying out.
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“From our perspective, if we’re getting return on investment that we need, and we’re getting billions of dollars of infrastructure development happening — and of course resource revenues for Albertans — then we’re not going to put a hard stop on it,” Nally said.
That answer isn’t good enough for NDP Leader Rachel Notley, who believes an announcement without details can’t be considered a clear plan.
“This minister had almost nothing to do for the last 15 months, and to bring forward an announcement like this, with so little information, I ask the question, what has he been doing?”
While in government, the NDP brought forward a number of petrochemical diversification programs itself, including one that uses royalty credits to attract investment. The second phase of that program is still ongoing.
The industry itself believes this new program will be successful, and could attract $30-billion worth of investment over the next decade.
“Our members are looking at tens of billions of dollars of projects right now,” said David Chappell, the board chair of the Resource Diversification Council. He is also a senior vice-president with Inter Pipeline.
“As companies spend tens and hundreds of millions of dollars on projects, before they decide whether they go ahead or not, they can count on this in their economics.”
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According to the Chemistry Industry Association of Canada, the chemicals sector in Alberta is already worth more than $12 billion, and directly or indirectly employs more than 58,000 people.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
