Alberta
With a boost of up to $200 million from the Province, Inter Pipeline Ltd. investing $600 million in new petrochemical plant east of Edmonton
Premier Notley announces private investment in a new petrochemical upgrading facility alongside David Chappell (r), Patrick Bergen and Pyramid Prefab Piping staff.
From the Province of Alberta
Made-in-Alberta plan attracts new jobs, investment
Alberta is taking a significant step forward on a more diversified economy with a project that supports hundreds of jobs and adds more value to our energy resources.
If the plan is finalized, Inter Pipeline Ltd. would invest about $600 million in a new petrochemical upgrading facility that would produce more valuable consumer products derived from propane, including acrylic acid that is used in many everyday consumer products. This major private investment is unlocked by support from Premier Rachel Notley’s Made-in-Alberta energy diversification strategy.
The project would build on the company’s supply and knowledge of propylene, a product it already produces at the company’s other petrochemical facilities east of Edmonton. Construction would create about 600 jobs with another 50 long-term positions supporting the local economy once the facility is fully up and running.
“For decades, Albertans settled for less while new jobs and investment went south of the border. So we’re grabbing the bull by the horns, fighting for a Made-in-Alberta plan that represents the single largest energy diversification effort since the days of Peter Lougheed. We’re proud to support upgrading projects like Inter Pipeline’s because they mean more good jobs and top dollar for the energy resources that belong to all Albertans.”
Inter Pipeline’s supply of propylene, a gas that results from adding value to raw propane, creates the opportunity to further leverage Alberta’s natural resource strengths and extend the value chain. By producing acrylic acid used in things like adhesives, floor polishes and paints, this project increases the likelihood of attracting investments in more manufacturing facilities in the future.
“Alberta’s abundance of natural resources has positioned Inter Pipeline to invest in opportunities like this that build on our strengths to extend the value chain and make products that are in demand around the world. We want to commend this government for fostering the environment for companies like ours to grow and create jobs, while competitively positioning our business in the world market.”
The announcement was made at Pyramid Prefab Piping, one of the hundreds of companies across the province benefiting from the Made-in-Alberta strategy. As a manufacturer that employs about 45 people in Calgary, Pyramid was contracted to build key components for Inter Pipeline’s project already under construction.
“We’re pleased to see the government’s vision for the future is focused on jobs and diversification, which will lead to more work for companies like ours to build the components needed for energy upgrading projects. This growth means we can put even more skilled tradespeople to work in the Calgary region and contribute even more to the oil and gas sector.”
If finalized by Inter Pipeline, the private investment would be unlocked by provincial support of up to $70 million in future royalty credits under the Petrochemicals Diversification Program, which was first developed in early 2016.
Quick facts
- Inter Pipeline’s acrylic acid and propylene derivatives facility would be in Alberta’s Industrial Heartland, northeast of Edmonton. Construction is expected to begin in 2021.
- The facility would convert 60,000 tonnes per year of propylene and produce 80,000 tonnes per year of propylene derivatives, including acrylic acid, when operational.
- Acrylic acid is a value-added product used to make coatings, adhesives, diapers, floor polishes and paints.
- Roughly 50 skilled, local permanent jobs and 600 skilled trade construction jobs would be created.
- Inter Pipeline has already been approved to receive up to $200 million in future royalty credits from the first round of the Petrochemicals Diversification Program for the construction its $3.5-billion Heartland Petrochemical Complex.
Background
Made-in-Alberta energy strategy
- Premier Notley’s government is investing $3 billion to support energy diversification that creates jobs and adds value to our resources here at home.
- The focus is on two key areas: partial upgrading of our bitumen and petrochemical processing that adds value to natural gas and natural gas liquids.
- Overall, this commitment is expected to attract more than $25 billion in private-sector investment to Alberta and create more than 20,000 jobs.
Petrochemical upgrading
- Support for the Inter Pipeline facility is provided under the petrochemical portion of the Made-in-Alberta strategy.
- Two projects – owned by the Canada-Kuwait Petrochemical Corporation and Inter Pipeline Ltd. – were selected under the first round of this program, which was announced in 2016. The projects combined for $8 billion in private investment, creating more than 5,000 jobs.
- The government announced a second round of support for petrochemical upgrading in 2018.
- Nauticol’s methanol facility was previously selected under the second round of this program. The entire project is a $2-billion private investment in a plant near Grande Prairie, creating roughly 3,000 direct and indirect jobs.
- Albertans and Canadians use dozens of products every day that are based in part on petrochemicals like those from Alberta’s growing value-added industry including:
- polyester fabric couches, HD televisions, phones coffeemakers and computers
- car tires, engine hoses, gas, oil, radio components and seats
- desks, chairs, computers, carpets, cellphones and other office supplies
Partial upgrading of bitumen
- $1 billion in grants and loan guarantees to encourage companies to invest in new or expanded bitumen-upgrading facilities.
- Partial upgrading reduces the thickness of oil sands bitumen so it can flow through pipelines more easily, without having to be blended with diluent or as much diluent, a thinning agent. Benefits include:
- increased prices for our resources before shipping
- up to 30 per cent more capacity on existing pipelines
- more world refineries capable of processing our product
- cost savings on diluent for industry
- fewer emissions by removing high carbon content
Energy diversification timeline
- January 2016 – Royalty Review Advisory Panel recommended more value-add within the province, including partial upgrading
- February 2016 – Petrochemicals Diversification Program (PDP) introduced
- October 2016 – Energy Diversification Advisory Committee (EDAC) formed
- December 2016 – First PDP projects awarded
- December 2017 – Inter Pipeline finalized investment in petrochemical project
- February 2018 – EDAC reported back, including recommendation of partial upgrading, more PDP and additional support for petrochemical feedstock infrastructure
- March 2018 – Government launched programs through the Energy Diversification Act
- Fall 2018 – oil price differential hit crisis point. In response, government took several actions:
- Temporary limit on oil production
- Doubled support for PDP
- Began crude-by-rail negotiations
- Appointed LNG Investment Team
- Request for industry interest in building refining capacity
- January 2019 – Government announced letter of intent for first partial upgrading project awarded (Value Creation Inc.)
- February 2019 – Canada-Kuwait Petrochemical Corporation finalized investment in petrochemical project
- February 2019 – Premier announced crude-by-rail agreements
- February 2019 – Nauticol awarded first project under second round of PDP
Alberta
Ford and Trudeau are playing checkers. Trump and Smith are playing chess
By Dan McTeague
Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry.
There’s no doubt about it: Donald Trump’s threat of a blanket 25% tariff on Canadian goods (to be established if the Canadian government fails to take sufficient action to combat drug trafficking and illegal crossings over our southern border) would be catastrophic for our nation’s economy. More than $3 billion in goods move between the U.S. and Canada on a daily basis. If enacted, the Trump tariff would likely result in a full-blown recession.
It falls upon Canada’s leaders to prevent that from happening. That’s why Justin Trudeau flew to Florida two weeks ago to point out to the president-elect that the trade relationship between our countries is mutually beneficial.
This is true, but Trudeau isn’t the best person to make that case to Trump, since he has been trashing the once and future president, and his supporters, both in public and private, for years. He did so again at an appearance just the other day, in which he implied that American voters were sexist for once again failing to elect the nation’s first female president, and said that Trump’s election amounted to an assault on women’s rights.
Consequently, the meeting with Trump didn’t go well.
But Trudeau isn’t Canada’s only politician, and in recent days we’ve seen some contrasting approaches to this serious matter from our provincial leaders.
First up was Doug Ford, who followed up a phone call with Trudeau earlier this week by saying that Canadians have to prepare for a trade war. “Folks, this is coming, it’s not ‘if,’ it is — it’s coming… and we need to be prepared.”
Ford said that he’s working with Liberal Finance Minister Chrystia Freeland to put together a retaliatory tariff list. Spokesmen for his government floated the idea of banning the LCBO from buying American alcohol, and restricting the export of critical minerals needed for electric vehicle batteries (I’m sure Trump is terrified about that last one).
But Ford’s most dramatic threat was his announcement that Ontario is prepared to shut down energy exports to the U.S., specifically to Michigan, New York, Wisconsin, and Minnesota, if Trump follows through with his plan. “We’re sending a message to the U.S. You come and attack Ontario, you attack the livelihoods of Ontario and Canadians, we’re going to use every tool in our toolbox to defend Ontarians and Canadians across the border,” Ford said.
Now, unfortunately, all of this chest-thumping rings hollow. Ontario does almost $500 billion per year in trade with the U.S., and the province’s supply chains are highly integrated with America’s. The idea of just cutting off the power, as if you could just flip a switch, is actually impossible. It’s a bluff, and Trump has already called him on it. When told about Ford’s threat by a reporter this week, Trump replied “That’s okay if he does that. That’s fine.”
And Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry. Just over the past year Ford and Trudeau have been seen side by side announcing their $5 billion commitment to Honda, or their $28.2 billion in subsidies for new Stellantis and Volkswagen electric vehicle battery plants.
Their assumption was that the U.S. would be a major market for Canadian EVs. Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,”according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”
But Trump ran on abolishing the Biden administration’s de facto EV mandate. Now that he’s back in the White House, the market for those EVs that Trudeau and Ford invested in so heavily is going to be much softer. Perhaps they’d like to be able to blame Trump’s tariffs for the coming downturn rather than their own misjudgment.
In any event, Ford’s tactic stands in stark contrast to the response from Alberta, Canada’s true energy superpower. Premier Danielle Smith made it clear that her province “will not support cutting off our Alberta energy exports to the U.S., nor will we support a tariff war with our largest trading partner and closest ally.”
Smith spoke about this topic at length at an event announcing a new $29-million border patrol team charged with combatting drug trafficking, at which said that Trudeau’s criticisms of the president-elect were, “not helpful.” Her deputy premier Mike Ellis was quoted as saying, “The concerns that president-elect Trump has expressed regarding fentanyl are, quite frankly, the same concerns that I and the premier have had.” Smith and Ellis also criticized Ottawa’s progressively lenient approach to drug crimes.
(For what it’s worth, a recent Léger poll found that “Just 29 per cent of [Canadians] believe Trump’s concerns about illegal immigration and drug trafficking from Canada to the U.S. are unwarranted.” Perhaps that’s why some recent polls have found that Trudeau is currently less popular in Canada than Trump at the moment.)
Smith said that Trudeau’s criticisms of the president-elect were, “not helpful.” And on X/Twitter she said, “Now is the time to… reach out to our friends and allies in the U.S. to remind them just how much Americans and Canadians mutually benefit from our trade relationship – and what we can do to grow that partnership further,” adding, “Tariffs just hurt Americans and Canadians on both sides of the border. Let’s make sure they don’t happen.”
This is exactly the right approach. Smith knows there is a lot at stake in this fight, and is not willing to step into the ring in a fight that Canada simply can’t win, and will cause a great deal of hardship for all involved along the way.
While Trudeau indulges in virtue signaling and Ford in sabre rattling, Danielle Smith is engaging in true statesmanship. That’s something that is in short supply in our country these days.
As I’ve written before, Trump is playing chess while Justin Trudeau and Doug Ford are playing checkers. They should take note of Smith’s strategy. Honey will attract more than vinegar, and if the long history of our two countries tell us anything, it’s that diplomacy is more effective than idle threats.
Dan McTeague is President of Canadians for Affordable Energy.
Alberta
Your towing rights! AMA unveils measures to help fight predatory towing
From the Alberta Motor Association
Know Before the Tow: Towing Rights in Alberta
Predatory towing is a growing concern in major cities across the province. The Alberta Motor
Association (AMA), in partnership with the Calgary Police Service and Calgary Fire Department,
wants to ensure Albertans are not only aware of this emerging issue but also know how to stop
it.
Today, AMA launches Know Before the Tow—a new, provincewide awareness campaign that
empowers Albertans with the knowledge needed to stay confident and in control when faced with
a tow scam. The campaign features a list of five key towing rights that every Alberta driver should
know:
1. You have the right to refuse unsolicited towing services.
2. You have the right to choose who tows your vehicle, and where, unless
otherwise directed by police.
3. You have the right to access your vehicle to retrieve personal items during a
storage facility’s business hours.
4. You have the right to ask if the towing company receives a kickback for taking
your vehicle to a particular storage facility or repair shop.
5. You have the right to a quote prior to service, and an itemized invoice prior to
making payment.
“Being in a collision or broken down at the roadside is stressful enough; the last thing any Albertan
needs is high pressure from an unscrupulous tower,” says Jeff Kasbrick, Vice-President,
Advocacy and Operations, AMA. “These towing rights are clear and remind every Albertan that
they’re in the driver’s seat when it comes to who they choose to tow their vehicle.”
Edmonton and Calgary in particular are seeing increasing reports of predatory towing. Unethical
operators will arrive at a collision or breakdown scene uninvited, create a false sense of urgency
to remove the vehicle, and ultimately leave drivers facing huge fees.
Starting today, Albertans can visit ama.ab.ca/KnowBeforeTheTow to download a digital copy of
their towing rights, helping them feel confident if faced with a tow scam. And soon, all AMA centres
will offer free print versions, which are small enough to tuck in a glovebox.
“Alberta’s towing industry is still highly reputable, with the vast majority of operators committed
to fair and professional service. In fact, AMA and our roadside assistance network is proud to
represent 80% of all private-passenger tows in the province, so our members can be confident
that we’ll always protect them—just as we have for nearly 100 years,” says Kasbrick.
“By knowing your rights and choosing trusted providers like AMA, you can avoid unnecessary
stress, costs, and uncertainty. Because the road to recovery after a collision shouldn’t have to
include fighting for your vehicle.”
Sergeant Brad Norman, Calgary Police Service Traffic Section, says law enforcement continues
to work diligently with first responders and community partners like AMA to put the brakes on
predatory towers, who “are showing up at collision sites and pressuring overwhelmed and
frightened victims into paying high towing rates.”
“Our priority is to ensure the safety of collision victims, the public, and first responders at
collision sites. Part of this effort is educating motorists about their rights so that they Know
Before the Tow that they can say no to unsolicited towing services and choose a reputable
tower of their choice instead,” says Norman. “No one deserves to be taken advantage of after
being involved in a collision.”
To learn more, and to view an expanded version of Alberta towing rights, visit
ama.ab.ca/KnowBeforeTheTow
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