IN THE NEWS / Task Force Hopes To Protect Ethane Feedstocks
MLA Rob Lougheed wants jobs, industry protected
by Liz Nayowski
Clover Bar/Fort Saskatchewan MLA Rob Lougheed wants to see Alberta's ethane supply protected from leaving the province.
Lougheed is serving on a task force formed last week by Alberta's Energy Minister Dr. Steve West to consider ways to protect the province's ethane supply and the jobs that could be lost if ethane feedstocks areexported to the United States.
West announced the move following the Nov. 26 approval by the National Energy Board for the construction of the 3,000 km Alliance Pipeline and a toll system that permits the transfer of ethane in natural gas to the U.S. The Alliance Pipeline will stretch from northeast British Columbia, through Alberta just north of Fort Saskatchewan and on to
Chicago, Ill., carrying roughly 1.3 billion cubic feet of natural gas per day out of the country.
Lougheed says the immediate concern is to protect petrochemical industry feedstocks, namely ethane, to insure future expansions of existing operations and the addition of new.
"It is not in Alberta's interests to have ethane leave the province. It will essentially get a free ride to Chicago and once there, the
advantage of industry locating in Alberta would be next to eliminated."
The task force is looking for a policy that will prevent the elimination of job opportunities for future generations, says Lougheed.
He notes the Alliance pipeline is in itself a good project because it will take away excess gas, in turn raising the price of natural gas.
"Extra gas resources have been lowering the prices. The pipeline will mean considerable revenue increases for the province, but we have to solve industry concerns regarding ethane removal."
Lougheed says an ethane policy has been in existence for more than 20 years and states it is to be upgraded in Alberta and Minister West wants quick action on reconfirming the energy policy.
In the Fort Saskatchewan area, manufacturers like Dow Chemical and Shell Chemicals are large users of ethane feedstocks.
Al Schultz, regional director of the Canadian Chemical Producers Association, says the group is not discouraging the taking of natural gas, but would rather see it stripped of its main liquids (ethane, butane, propane and condensates) here in the province.
"The chemical manufacturing industry is very competitive on the global scale and in Alberta we're at a critical stage with various companies building up their operations."
He says the CCPA is not asking for special concessions, but if the raw product can be taken further here in the province, it would enhance spin-off industry that in turn would benefit Albertans.
The task force includes CEOs of the petrochemical industry and
natural gas producers as well as ministry people and MLAs. They will meet over the next three weeks to gather input from stakeholders and to review a number of legislative, royalty, regulatory and other options.
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