Alberta chooses two petrochemical plants for $500M in royalty credits

The Alberta government is pledging half a billion dollars in royalty credits to two petrochemical projects planned for an industrial area north of Edmonton.

Energy Minister Marg McCuaig-Boyd says the projects to convert propane into higher-value plastic or plastic feedstock will diversify the economy and provide thousands of construction jobs. Both projects had previously been announced by their Calgary-based pipeline company recipients.

Pembina Pipeline is to receive up to $300 million in royalty credits for its proposed integrated propylene and polypropylene facility in Sturgeon County to be built for about $4 billion. In April, it announced a joint feasibility study on the project with partner Petrochemical Industries Company, a subsidiary of the Kuwait Petroleum Corp.

Inter Pipeline is to receive up to $200 million in credits for its proposed $1.85-billion propylene facility in Strathcona County, a project it inherited when it bought Williams Canada in September.

The government says its royalty credits will only be provided after construction is complete and a facility is operating.

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