Alberta unveils incentives program for petrochemicals sector
$500 million in royalty credits available over the 10-year program.
In a bid to increase investment in the province, Alberta’s NDP government has announced a new subsidy program which would give companies building new petrochemical plants a total of $500 million in royalty credits.
The credits could be sold to energy companies that extract oil and gas in the province.
The program, announced on February 1, is specifically targeted at propane and methane processing facilities. In a statement, the Alberta provincial government says construction of such facilities could create up to 3,000 new jobs for each plant, including 1,000 full-time jobs once the plants are operational. The government will offer up to $500 million in royalty credits over 10 years to select facilities through a competitive application process, with a goal of encouraging between $3 billion and $5 billion of new investment in chemical manufacturing.
Applications for the program are due at the end of March, and the province will announce which companies have been awarded the subsidies in April.
The funding won’t be used as start up money, but instead would be paid out over three years when the plants are up and running.
Alberta’s once-booming economy has been hit hard in recent years by the downturn in oil and gas prices.