Petrochemicals & Natural Gas: Supplying the Global Marketplace

Canada ranks as having the #1 global lithium battery supply chain in the world according to BloombergNEF’s Global Lithium-Ion Battery Supply Chain Ranking. The ranking is based on 46 specific measures divided into five main categories: availability of raw materials, battery production capabilities, market demand, ESG, and overall industry, infrastructure, and innovation. Alberta’s well-developed infrastructure abundant natural gas resources supply the raw material for petrochemicals used in manufacturing components for many emerging technologies. This includes the casings of li-ion batteries and the plastics and polymers that form the frames of solar panels.

The global lithium-ion battery market expected demands in the international market surpasses $120.65B by 2028. The production of lithium-ion batteries, which power EVs and store renewable energy, heavily depends on petrochemical-derived components. Moreover, petrochemical-derived materials facilitate the development of lightweight parts for electric vehicles, improving their efficiency, driving range, and environmental sustainability.

Solar PV manufacturing demand leads the renewable sector worldwide, with market demand set to more than double by 2028, compared to 2022.

Alberta has one of the largest natural gas infrastructure networks in North America. TC Energy’s Nova Gas Transmission Line (NGTL) is the primary gas delivery system in Alberta — connecting the Western Canadian Sedimentary Basin to domestic and export markets through 33,000 km of pipeline. The company is currently implementing a $10 billion infrastructure program to add 3.5Bcf/d of incremental delivery capacity by 2024 which will expand the capacity of the network to deliver natural gas throughout Alberta. 

Alberta is also home to the largest petrochemical manufacturing centre in Canada. Alberta’s Industrial Heartland counts 40 industrial sites, 7,000 employees, and $40 billion in investment. $7.2 billion in petrochemical projects are planned, underway or have recently been completed in Alberta. Alberta’s extensive rail network allows market access across North American and Asian markets for supply chain deliveries. The Port of Vancouver and Port of Prince Rupert, two of Canada’s largest ports, offer trade departures to major Asian markets including China, Japan, South Korea and India.

Alberta’s midstream natural gas infrastructure has the capacity to accommodate new petrochemical projects. Through the province’s Natural Gas Vision and Strategy, Alberta plans to increase processing and transportation capabilities to become a global top 10 producer of petrochemical products. 

According to the Alberta’s Industrial Heartland Association, there’s an opportunity to grow Alberta’s petrochemical sector by more than $30 billion by 2030.

Alberta’s government supports the long-term growth of the petrochemical industry by creating the best possible policy environment through cutting red tape and facilitating approvals. Government incentive programs, such as the Alberta Petrochemical Incentive Program (APIP), make Alberta an attractive place to build new petrochemical plants.

Alberta is one of the most cost-effective jurisdictions in North America, with the lowest corporate income tax in Canada.

Alberta has a well-established petrochemical industry, with 36 chemical and petrochemical manufacturers operating throughout the province. It’s home to the most engineers per capita in Canada with a large labour pool specializing in petroleum and chemical engineering. Research and development costs in Canada are very cost effective, as salaries for highly skilled labour are lower than in other industrialized countries.

The Government of Alberta and Invest Alberta offer a regulatory roadmap and supports to help navigate investments into the sector. Alberta’s Department of Energy and Department of Environment and Parks also have in-house expertise to ensure accurate assessment of projects.