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ENERGY: Petrochemical industry boosted by new ethane extraction policy

            (AlbertaIndex, July 12, Thursday) --- Alberta’s petrochemicals production is set to increase after the provincial government approved the implementation of the Incremental Ethane Extraction Policy (IEEP). 

            The policy will provide incentives for value-added production and the use of ethane in the province through royalty credits.
           
As a result, the province expects an additional 60,000 and 85,000 barrels of ethane per day to be produced over the next five years. Companies are expected to invest in new off-gas facilities and plant expansions.
            As more bitumen upgrading capacity is added in the province, there will be future opportunities to expand the use of off-gases and other byproducts of upgrading for petrochemical production.
            Announced last September, the IEEP aims to encourage greater production of ethane - a natural gas liquid and key petrochemical feedstock that can be extracted from natural gas and gases produced as a by-product of bitumen upgrading. By providing incentives to extract additional ethane from these products, Alberta’s petrochemical producers can continue to grow production of higher value petrochemical products such as ethylene and polypropylene.
            “In my mandate letter, Premier Stelmach instructed me to pursue new value-added opportunities within the energy sector. 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.
            “Not only does IEEP encourage greater ethane production, it also provides an incentive for increased ethane consumption that directly benefits Albertans.”

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