Government of Canada helps to attract new investment in production of highly recyclable plastics

News release

Federal support helps secure a $4.5-billion investment in Canada and 2,110 jobs in Alberta

April 26, 2019 – Sturgeon County, Alberta

In Canada, environmental leadership and economic growth go hand in hand. The Government of Canada recognizes the opportunities offered by clean technologies in Canada’s innovative resource industries. Investing in the cleaner production of plastic products helps make the most of Canada’s resources while protecting the environment for future generations.

Today, the Honourable Amarjeet Sohi, Minister of Natural Resources, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced a commitment of $49 million to Canada Kuwait Petrochemical Corporation (CKPC), a joint venture between Pembina Pipeline Corporation and Kuwait's Petrochemical Industries Company K.S.C. (PIC) to construct a new $4.5-billion polypropylene complex in Sturgeon County, Alberta.

As part of Canada’s $1.6-billion plan to support jobs and workers in Canada’s oil and gas sector, this investment will help create 200 new jobs while securing 1,910 construction jobs for the life of the project. In addition, it is estimated that across Canada 13,800 indirect and induced jobs will be supported by the construction of the facility, and an estimated 1,500 indirect and induced jobs will be supported by the plant’s ongoing operations, based on Conference Board of Canada models.

CKPC will take abundant Canadian propane and increase its value through the production of highly recyclable polypropylene. Since Canada currently produces no polypropylene, this strategic project will open up an entirely new chain of opportunities and markets for Canada. By reducing current transportation of propane to current offshore markets and then returning to Canada as end use products, approximately 180,000 tonnes of carbon dioxide emissions will be reduced per year.

Thanks in part to this federal support, CKPC will also invest in the skills of the future by increasing its number of co-op positions for post-secondary students, invest in increased opportunities for women in trades and will further invest $20 million in additional research and development. CKPC will also invest $7 million in efforts to reduce plastic waste as a contribution to Canada’s environmental goals.

Quotes

“Our government is stepping up to support innovation and job creation in Canada’s resource industries. CKPC’s $4.5-billion investment further demonstrates Canada and Alberta are great places to invest. The project will help open new markets and opportunities for Canada’s resource industries, while creating more jobs across the province.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

“Our government is working with the hard-working men and women in Alberta’s oil and gas sector to create new jobs, opportunities, and markets for Canada’s resources. That’s why we’re proud to support CKPC’s project that will take low-priced Canadian propane and produce high-quality polypropylene right here in Alberta and secure thousands of jobs in the process.”
– The Honourable Amarjeet Sohi, Minister of Natural Resources

“This project brings Canada and Kuwait together in a highly strategic investment that adds value to our natural resources. It will create thousands of jobs and new opportunities for Canadians. Combined support of the Government of Canada, the Province of Alberta and Sturgeon County helped make this project possible in a global market that is extremely competitive. Attracting such a valued partner as PIC, is a testament to the worth that our resources and our industry can bring to Canada and the world.”
– Stuart Taylor, Chairman, Canada Kuwait Petrochemical Corporation

Quick facts

  • Founded in 2017, CKPC is a joint venture headquartered in Calgary, Alberta, between Pembina Pipeline Corporation and Kuwait’s Petrochemical Industries Company.

  • This federal investment is being made through the Strategic Innovation Fund, a program designed to attract and support high-quality business investments in Canada’s most dynamic and innovative sectors.

  • In addition to the Strategic Innovation Fund, there are hundreds of programs and services to help businesses innovate, create jobs and grow Canada’s economy. With its simple, story-based user interface, the Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes.

Associated links

Contacts

Dani Keenan
Press Secretary
Office of the Minister of Innovation, Science and Economic Development
343-291-1710

Media Relations
Innovation, Science and Economic Development Canada
343-291-1777
ic.mediarelations-mediasrelations.ic@canada.ca

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