Two propane processing facilities are closer to becoming reality thanks in part to the provincial Petrochemicals Diversification Program.
Major investments proposed by Inter Pipeline and Pembina Pipeline Corporation will add value to Alberta’s propane resources, creating growth and diversity in the Heartland.
Both are first of their kind in Canada and will be located in Alberta’s Industrial Heartland, taking advantage of the Heartland’s ample supply of cost advantaged propane feedstock. Traditionally, propane is used as a fuel product or shipped out of Alberta for processing elsewhere. The new facilities will convert propane into a higher value energy product. It is then used as the building block for numerous consumer products that include plastics, acrylic fibres, paints and resins which are steadily increasing in global demand.
The petrochemical facilities will add value to Alberta’s propane resources, creating growth and diversity in the Heartland and Alberta’s energy sector. The proposed facilities are expected to reach a combined capital cost of about $6-billion.
"It'll help Strathcona and Sturgeon and a good story for the Edmonton region, a good story for Calgary that engineers can get back to work and start designing and planning these plants and it's a good story for fabrication shops, building modulars and building the actual plant itself," said Ed Gibbons, chairman of Alberta's Industrial Heartland Association.
The facilities will generate more than 4,000 construction jobs, nearly 250 operational jobs, increases to local and regional spending and the generation of tax revenues for local municipalities as well as the provincial government.
Sturgeon County has been working with Pembina for over a year to secure the lands and build parameters for the development.
“We are so pleased that Pembina has chosen to expand operations in Sturgeon County," said County mayor Tom Flynn. "This is important to Sturgeon County and Alberta and will provide significant benefits to Alberta workers and their families.” said Mayor Tom Flynn.
Both facilities are expected to be operational by 2021.