@ABHeartland

Albertas Petrochemical Opportunity:

Benefitting Industry and Alberta
CERI Petrochemical Conference June 9, 2015
www.industrialheartland.com

Who We Are
A cooperative effort of five municipalities in and
around the Edmonton Region
An organization committed to sustainable growth
through economic development and planning
A specialized region of over 582 km2 zoned for heavy
industrial development

AIHAs Areas of Focus

Economic Development
Business Retention and Expansion
Business Attraction

Government Relations
Elected Officials
Administration

Community Communications
Life in the Heartland
Social Media

AIHAs Existing Industry

Canadas largest hydrocarbon processing center home to
15 world scale facilities responsible for 43% of national
basic chemical manufacturing
Major center for:

Petroleum refining (422 Mbpd capacity)

Bitumen upgrading (150 Mbpd expanding to 300 Mbpd capacity)
Ethylene, MEG, polyethylene production
Natural gas fractionation and processing
Fertilizer production
Pipeline terminal and storage area
A variety of other petrochemical and specialty products

Albertas PETROCHEMICAL PLAY

defining the best fit
IHS Consultings robust analysis aligns
industry factors with Alberta attributes
Results reflect weighted rankings of the following:
Derivative Market Outlook (40%)
Feedstock (25%)
Operations (15%)
Value Chain (10%)
Technology (5%)

Investment Opportunity Analysis

Benefits to Albertans and Canadians

Increasing GDP

High value manufactured products

Non-royalty related tax revenue

Counter-cyclical to upstream royalties

Jobs, Jobs, Jobs

High paying, long term jobs for operators

Boost to local engineering and construction firms
during construction and maintenance

Strong corporate citizens

Benefits to Industry
Growing the pie

Existing industry can most easily capitalize on

opportunities

Expanding local feedstock demand

Local options for upstream and midstream

industry

Downstream opportunities

Challenges to Investment
Incentives from competing regions

Global competition for investment

Access to major markets

Continued growth for petrochemicals and

plastics but the growth isnt in North America

Higher capital costs

Benefits of Investment
PDH Facility Value Chain Study Stantec
Quantify the benefits a propane
dehydrogenation and polypropylene
facility bring to Alberta

Jobs construction and operation

GDP Growth
Tax Revenues (non-royalty related)

Albertas History of Strategic Incentives

Ethane Extraction Program (1970)

Incremental Ethane Extraction Program (2011)
Generic Oilsands Policy (1997)
Bitumen Royalty in Kind Program (2009)
Accelerated Capital Cost Allowance
(Government of Canada)

Albertas NDP Government

Tremendous opportunity for the further
diversification of Albertas economy based upon our
major strength natural resources
The petrochemical industry is the low-hanging fruit
for diversification
Will the NDP restore the Alberta Advantage?

Contact Us
Garret Matteotti
Manager, Business Development
garret@industrialheartland.com
+1-780-998-7453

industrialheartland.com

@ABHeartland