Petrochemicals Frequently Asked Questions
What are some derivatives of natural gas liquids, and what products are they used to make?
Natural gas liquids include ethane, propane and butane.
Examples of petrochemical feedstocks made from ethane include ethylene, ethylene glycol, polyvinyl chloride, styrene and linear low-density polyethylene. Examples of end products include film, moulding, wire and cable, flooring, plastics, detergents, synthetic lubricants, PVC pipe and cable.
Propylene and polypropylene are examples of petrochemical feedstocks made from propane. Examples of end products include automotive parts, appliances and toys.
Examples of petrochemical feedstocks made from butane include isobutylene and butyl alcohol. Examples of end products include Methyl Tertiary-Butyl Ether (MTBE), synthetic rubber, nylon fibres, plastics, acetic acid, household plumbing and chewing gum.
What benefits do Albertans receive from the petrochemical industry?
Alberta benefits directly from petrochemical development through royalties received on its natural gas liquids that are used as feedstock, as well as from the energy resources used for fuel to run the manufacturing processes, such as heat and electricity. Indirect benefits of value-added manufacturing in Alberta are obtained through taxes (personal, corporate and property), higher-level jobs and the purchase of locally produced goods and services.
Some estimates of the contribution made by our largest petrochemical sites are:
| Site | Annual Revenues | Employment * | Average Annual Salary | Municipal Taxes | Average Length of Employment |
| Fort Saskatchewan | Over $3 billion | Over 3,000 Full-time jobs |
Over $60,000 | Over $11 million | Over 14 years |
| Joffre/Prentiss | About $3 billion | Over 1,500 Full-time jobs |
Over $60,000 | About $8 million | Over 10 years |
* Each full-time job is estimated to create an additional 2.5 indirect jobs
Source: Canadian Chemical Producers Association
What is the Alberta government doing to encourage growth in the petrochemical industry?
In 2007, The Incremental Ethane Extraction Policy (IEEP) was announced. It is a 10-year initiative to encourage increased ethane extraction by providing royalty credits for increased ethane consumption by petrochemical facilities in Alberta. For more information see the news release
, guidelines or legislation.
Visit the Industry Canada website for information about the petrochemical industry in Canada.
