<article><p class="lead">Alberta's government is launching the Alberta Petrochemicals Incentive Program, a 10-year program that will issue grants rather than royalty credits for new petrochemical projects in the province. </p><p>The grants of an unspecified amount would run alongside the government's existing royalty-based Petrochemicals Diversification Program, said Dale Nally, Alberta's associate minister of natural gas and electricity. The new grants will begin in the fourth quarter with a goal of attracting C$30bn ($22bn) in investment by 2030. </p><p>The grants will be issued to companies after eligible projects are operational, according to Nally. The program will run year-round without any specific deadline. Grant amounts, terms and application process are yet to be finalized. </p><p>The ministry estimated Alberta's ethane production could supply at least two new ethylene plants in the region.</p><p>A slowdown in oil and gas production in the region during the first quarter contributed to economic uncertainty in western Canada. </p><p>"This program is exactly what the industry needs and will attract a lot of investment," said David Chappell, senior vice president of InterPipeline and board chair of Alberta's Resource Diversification Council.</p><p>InterPipeline's 525,000 t/yr Heartland propane dehydrogenation (PDH) unit and associated derivatives units in Strathcona County, which will consume approximately 22,000 b/d of propane from its Redwater fractionator, is already under construction and is slated for operation in early 2022. InterPipeline is still pursuing a strategic partner for the project. </p><p>Pembina announced a final investment decision on its own 550,000 t/yr PDH unit and polypropylene facility as part of an investment with Kuwait's Petrochemical Industries Company in February 2019, but has since deferred that investment.</p><p class="bylines">By Yulia Golub</p></article>
