C-MACC Perspectives No 23
Alberta – Can Any Incentive Be Enough For More Chemicals?
- Recent Alberta gov’t initiatives suggest “Canada” may be little different to Aramco in terms of future behavior with respect to hydrocarbons investment. Do Dow and/or Nova step up? Or does this attract a newcomer, or no-one?
- Investment incentives are in focus and being pushed higher, as evidenced by the Alberta gov’t launching of a 10-year program that will issue grants rather than royalty credits for new chemical projects. And, this adds to benefits from an abundant supply of chemical feedstock in the region looking for a home.
- Alberta (and Canada) attempts to add value to its plentiful natural resources, will be constrained by the price of Crude Oil and ESG, climate change and other regulatory opposition in the US (and also in Canada). Canada’s reaction is natural, but incentives, how ever high, may not be enough – but beware China.
See PDF below for all charts and tables