Provincial assistance for the diversification of petrochemical feedstocks will in continue in Alberta as the government ends incentives for petrochemicals feedstock infrastructure and partial upgrading of bitumen.
The feedstock diversification program offers royalty credits to large, privately funded projects that convert ethane, methane, or propane into plastics, fabrics, and fertilizers.
A second round of the program that began last year committed $1.1 billion to diversification projects, applications for which were suspended after confirmation of $150 million of assistance (OGJ Online, Mar. 13, 2018).
Minister of Energy Sonya Savage and Associate Minister of Natural Gas Dale Nally, whose United Conservative Party won control of the Alberta government last April, on Oct. 23 confirmed the feedstock diversification program will continue with resumption of decision-making on existing applications.
To be discontinued are the Petrochemicals Feedstock Infrastructure Program and Partial Upgrading Program, which a press release said “carry a higher financial risk to government and ultimately to Albertans.” The government also will not continue with a request for proposals for refinery projects, “which would have also included potential government support.”