Alberta still pushing over $30 billion in major industrial projects with 2020 vision.
As we step further into 2020, the air of frustration still exists in Alberta, though now with a push towards acceptance and tenacity. After five tumultuous years for many, a new decade is upon us and with it, a chance to push the refresh button. I often try to write about strengths and potential opportunities in our marketplace as an alternative to the “pull your hair out exasperation” that many avoid when reading about the daily trials and tribulations in the energy sector (or the economy in general). To this end, feel free to check out some of my older posts!
While a lot of Alberta’s economic news leans towards a less optimistic viewpoint, I wanted to highlight a handful of massive industrial projects that are currently under construction or proposed across the province, outside of the oil and gas industry. These projects will equate to many billions of dollars of investment and thousands of jobs in Alberta over the coming years.
Under Construction
Telus Infrastructure Upgrades (Province wide) — $16 Billion
Telus announced it will spend $16 billion on expanding its broadband network infrastructure in Alberta, an investment expected to create thousands of jobs. The $16-billion investment will be spent over a period of five years ending in 2023 and is earmarked to hire 5,000 Albertans over the next five years; Connect more homes, businesses and schools to the fibre optic network, including those in remote communities; Prepare Alberta for 5G technology; Support Internet of Things (IoT) capabilities and agriculture tech; and support the creation of an additional 20,000 jobs across the province
https://edmonton.ctvnews.ca/game-changer-telus-announces-16b-investment-in-alberta-over-five-years-1.4608158
Integrated Propane Dehydrogenation and Polypropylene Plant (Sturgeon County) - $4.9 Billion
This plant is expected to consume approximately 22,000 barrels per day of propane and produce up to 550,000 tonnes per year of polypropylene, a product that will be shipped globally in pellet form. The complex is expected to create 150 permanent full-time jobs, as well as 2,000 to 2,500 on-site construction jobs. The project is a joint venture between Pembina Pipelines and Petrochemical Industries of Kuwait and should be operational in the second half of 2023.
https://www.ckpcpolymers.com/complex
Inter Pipeline Integrated Propane Dehydrogenation and Polypropylene Facility (Strathcona County) - $3.5 Billion
The Heartland Petrochemical Complex is designed to convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene, a high value, easy to transport plastic used in the manufacturing of a wide range of finished products. Construction of the complex began in early 2018 with completion scheduled for late 2021. Consisting of a propane dehydrogenation (PDH) and a polypropylene (PP) facility, the Heartland Petrochemical Complex will cost approximately $3.5 billion and is located in Strathcona County, Alberta.
http://www.interpipeline.com/operations/constructionprojects/heartlandpetrochemicalcomplex/heartland-complex.cfm
Central Utility Block for Heartland Petrochemical Complex (Strathcona County) - $600 Million
The central utility block is a 102 Megawatt natural gas-powered cogeneration facility that is capable of supplying electricity, steam, and other utilities to Inter Pipeline's integrated propane dehydrogenation and polypropylene plants. Inter Pipeline sold the Heartland Petrochemical Complex's Central Utility Block (CUB) to Fengate Capital Management (Fengate) in 2018, a privately held infrastructure and real estate investment firm, that will continue its operation and utility supply.
http://www.interpipeline.com/news/news-releases.cfm?newsReleaseAction=view&releaseId=1293
Proposed
Nauticol Grande Prairie Methanol Plant (Grande Prairie County) - $2.4 Billion
The proposed facility would produce 3 million metric tonnes of methanol annually while using 300M cubic feet of natural gas per day. The project will support 1,000 construction jobs and 200 permanent jobs in the area. The proposed site is 10 kilometres south of Grande Prairie, near the IP Pulp Mill.
https://www.dailyheraldtribune.com/news/local-news/county-and-nauticol-enter-agreement-to-purchase-land-for-methanol-plant
Titanium and Zircon Extraction Facility (Wood Buffalo) - $400 Million
The proposal is to construct a $400-million facility at CNR's Horizon oilsands site that would produce titanium and zircon from the materials left over from bitumen production. Zircon is used to make ceramic tiles and other products, while titanium is used in products ranging from golf clubs and bicycles to aircraft and missiles.
http://www.digitaljournal.com/tech-and-science/technology/new-technology-will-produce-titanium-from-oilsands-waste/article/517982
Clear Hills Mining Project (Clear Hills) - $300 Million
Construction of a mining project 200 kilometers north of Grande Prairie is proposed that will support the demand for high-strength, low alloy steel and ferrovanadium products. It is estimated the the mine could supply 557 million tonnes of iron and 2.45 billion of contained vanadium pentoxide.
https://www.prismdiversified.com/
It’s easy to get bogged down in the negative news surrounding delayed pipelines, figurative and literal roadblocks, and absentee governance, but behind the veil, there are some outstanding developments, projects and innovations that are taking place all across Alberta. Alberta Major Projects makes note of nearly $200 billion in proposed or under construction development across the province! We are at the heart of a highly inventive, yet humble and hard-working province, so oftentimes the technologies and growth that local companies are creating is not always fully broadcast as it should be. My goal over this next year will be to further share these success stories and show how Alberta businesses continue to fight their way forward, often better than ever. I would love to hear about specific examples if you have a few moments to comment or write me back.