Alberta introduces incentive for petrochemical producers and companies
In a bit to encourage greater production of ethane, Alberta's Department of Energy has announced the implementation...
In a bit to encourage greater production of ethane, Alberta’s Department of Energy has announced the implementation of its Incremental Ethane Extraction Policy (IEEP).
According to the province, the IEEP will provide incentives for value-added production and the use of ethane in the province.
“By implementing the Incremental Ethane Extraction Policy, we are demonstrating how Alberta can get the most out of our energy resources and promote the creation of long-term, sustainable jobs for Albertans,” said energy minister Mel Knight.
First announced in September 2006, the IEEP provides incentives for provincial petrochemical producers to grow production of higher value petrochemical products such as ethylene and polypropylene. Additionally, the policy will provide royal credits to encourage petrochemical companies to significantly increase their ethane consumption.
“Not only does IEEP encourage greater ethane production, but it also provides an incentive for increased ethane consumption that directly benefits Albertans,” explained Knight.
According to the Department of Energy, the policy will boost ethane production by 60,000 and 85,000 additional barrels a day over the next five years.