Refining and Petrochemical Development

Creating thousands of good jobs for Albertans

An Alberta Party government will energize the development of refining and petrochemical processing, creating more value within the province and thousands of good jobs for Albertans.

“As Wayne Gretzky once said, you have to skate to where the puck is going. Passively sitting around and hoping the market works is yesterday’s approach. We need to aggressively get in the game and make big moves to generate more refining and petrochemical processing here in Alberta.” - Alberta Party Leader Stephen Mandel

Supporting the Development of CanaPux

  • Commonly referred to as bitumen pucks, CanaPux are developed by CN and Wapahki Energy, owned by Heart Lake First Nation (approximately 300 km northeast of Edmonton).

  • The technology converts bitumen into a solid puck product that is capable of being exported by rail or other methods (rather than pipeline).

  • This is a potential revolution for Alberta’s oil sands industry -- one that enables Albertans to realize the full value of their resources by avoiding pipeline politics.

  • An Alberta Party government will expedite approvals for the pilot facility and contribute financial support for one-third of the pilot ($16.7 million).

Increasing the Alberta Innovates budget with a focus on material sciences

  • Alberta Innovates contributes to the creation of new industries in Alberta and strengthens existing ones. It diversifies the economy and creates jobs and increases exports.

  • Alberta Innovates currently funds research that focuses on turning bitumen into products other than gas, diesel and other fuels such as asphalt, vanadium batteries, plastics and carbon fibre.

  • The development of these alternatives is a long term approach that will help to increase demand for our resources, create jobs, lower our exposure to global oil prices, and help diversify our economy.

  • The NDP have reduced the Alberta Innovates budget going from $288M in 2018-19 to $244M in 2020-21.

  • An Alberta Party government will not only reverse those cuts but increase the total Alberta Innovates budget by 30% to $375M by 2020-21 and direct the additional funds to a rapid expansion of research into new uses for our resources.

Expanding Refining in Alberta

  • Once Phase 1 is proven out, an Alberta Party government will support construction of Phase 2 and Phase 3 of the Sturgeon Refinery.
  • This helps Alberta expand its refining capacity, creating more value here in the province and creating thousands of skilled jobs for Albertans.

  • An Alberta Party government will expedite the review of necessary approvals and expand its Bitumen Royalty in Kind (BRIK) program.

  • Construction of both Phase 2 and 3 have a combined total construction expenditure of an estimated $18.0 billion which will result in an increase in GDP of $16.0 billion, and create 140,000 person-years of employment.

  • Once construction is complete, the additional the two phases will increase GDP by an average of $5 billion per year, and result in an estimated 13,000 additional jobs per year.

Energizing Petrochemical Processing

  • To stimulate petrochemical processing in the province, an Alberta Party government will establish a Gas Royalty in Kind program that takes a similar approach to the Bitumen Royalty in Kind program.

  • This will have the Government of Alberta take a portion of its natural gas royalties “in kind” rather than in cash. This will enable the government to market the natural gas in ways that stimulate gas processing and petrochemical plant expansions in the province.

  • An Alberta Party government will also establish Alberta’s petrochemical diversification program as a 10 year program , rather than the NDP’s unpredictable annual program. This would provide stability and certainty to the market, helping attract more investment.

  • The petrochemical diversification program will also be adjusted to move from a royalty credit to a more efficient subsidy program.
The Alberta Party