Alberta Premier Jason Kenney and Minister of Energy Sonya Savage respond to the federal approval of the Trans Mountain Pipeline in Edmonton, Alberta, on Tuesday June 18, 2019. THE CANADIAN PRESS/Amber Bracken

Alberta Premier Jason Kenney and Minister of Energy Sonya Savage respond to the federal approval of the Trans Mountain Pipeline in Edmonton, Alberta, on Tuesday June 18, 2019. THE CANADIAN PRESS/Amber Bracken

United Conservatives to continue with NDP’s Alberta petrochemical credit program

Decision means the end of a $440-million loan guarantee announced by the NDP last January

The United Conservative government in Alberta says it will carry on with a program introduced by the former NDP regime to use $1.1 billion in energy royalty credits to encourage new petrochemical projects.

But it will cancel two other NDP energy diversification schemes offering loan guarantees and grants because they carry a higher financial risk for Albertans, Energy Minister Sonya Savage said Wednesday.

One program worth $500 million was designed to back petrochemical feedstock infrastructure projects and the other, worth $1 billion, to encourage more partial upgrading of crude by developers in Alberta.

“This (credits) program has demonstrated success in developing projects in a financially responsible way with private industry taking the lead,” said Savage on a conference call.

The decision means the end of a $440-million loan guarantee announced by the NDP last January under the partial upgrading program to help Value Creation Inc. build a $2-billion upgrader near Edmonton that would convert diluted oilsands bitumen into medium synthetic crude and diesel.

The Calgary-based company, which had a non-binding letter of intent for the guarantee, has been told the program will not be continuing, said Kavi Bal, senior press secretary for Savage.

The province says it will also cancel an NDP call for proposals for refinery projects, which would have included potential government support.

About $150 million in credits from the $1.1 billion available under the second round of the petrochemical program announced last year have already been awarded, said Dale Nally, associate minister of natural gas.

The government is in the process of going through applications to allocate the rest but has not yet set a timeline, he added.

The first round of the NDP’s petrochemical program resulted in $200 million in credits for Inter Pipeline Ltd. and $300 million for Pembina Pipeline Ltd., both of which are building multibillion-dollar projects in central Alberta to turn propane into polypropylene plastic.

Dan Healing, The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Emily Keeping of Wetaskiwin, Alta., was last seen at 4:20 p.m. on Feb. 25, 2021 at the FasGas on 49 St and 50 Ave in Wetaskiwin. Supplied/ Wetaskiwin RCMP.
Wetaskiwin RCMP seek assistance in locating missing 11-year-old

Emily Keeping was last seen on Feb. 25, 2021 at the FasGas on 49 St and 50 Ave in Wetaskiwin.

Alberta premier Jason Kenney, right and Doug Schweitzer, Minister of Justice and Solicitor General, provide details about Bill 13, the Alberta Senate Election Act., in Edmonton Alta, on Wednesday June 26, 2019. THE CANADIAN PRESS/Jason Franson
Minister Doug Schweitzer talks on Enhanced COVID-19 Business Benefit

Provincial government rolling out new benefit this April to better help small businesses.

Alberta reported an additional 399 cases of COVID-19 Thursday, on 9,217 tests, for a test positivity rate of 4.3 per cent. (Image courtesy CDC)
Red Deer down to 562 active COVID-19 cases

8 new COVID-19 deaths, 399 additional COVID-19 cases

COVID-19. (Image courtesy CDC)
City of Wetaskiwin COVID-19 deaths increase to five

New COVID-19 death in the City of Wetaskiwin despite decrease in active cases.

City of Red Deer has nearly doubled its active COVID-19 case count since Feb. 10 and has 75.6 per cent of the Central zone’s active cases. (File photo)
Another new high: Red Deer hits 574 active COVID-19 cases

Province reports 13 new COVID-19 deaths, 430 new cases

Bookings for COVID-19 vaccines for people age 75 or older start Wednesday. (File photo by THE CANADIAN PRESS)
Updated: Delays for seniors booking for vaccine appointments

By 9:20 a.m. Wednesday, 4,500 seniors had booked their appointments

Sylvan Lake's Winter Village lured many visitors to the town this winter. The town has launched a new contest to attract a new business.
(Black Press file photo)
Sylvan Lake offering rent-free storefront space to lure new businesses

Winning business proposal will get a storefront space rent-free for a year

NDP leader Jagmeet Singh holds a press conference on Parliament Hill in Ottawa on Wednesday, Feb. 24, 2021. THE CANADIAN PRESS/Sean Kilpatrick
NDP will not trigger election as long as pandemic continues: Singh

‘“We will vote to keep the government going’

Mike Ammeter (Photo by Rebecca Hadfield)
Sylvan Lake man elected chair of Canadian Canola Growers Association

Mike Ammeter is a local farmer located near the Town of Sylvan Lake

Students and staff at Gateway Christian School wore pink Wednesday in support of Pink Shirt Day, a worldwide anti-bullying initiative that was started in 2007. (Photo courtesy of Red Deer Public Schools)
Students, central Alberta community celebrate Pink Shirt Day

Mayor of Sylvan Lake Sean McIntyre supports anti-bullying cause

Red Deer Court of Queen’s Bench Justice Anne Kirker is expected to sentence Satnam Singh Sandhu on Friday. Red Deer Advocate file photo
Updated: Sylvan Lake man pleads guilty to manslaughter for strangling wife in 2019

Kulvinder Sandhu was strangled and died in hospital several days later

Sentencing delayed in the stabbing death of Samantha Sharpe, of Sunchild First Nation. (Red Deer Advocate file photo)
Central Alberta man not criminally responsible for killing his father in 2020: judge

Psychiatrist testified Nicholas Johnson was psychotic when he killed his father

The cover of “Hometown Asylum: A History and Memoir of Institutional Care.” (Submitted)
Ponoka-born author writes history of old mental hospital

“Hometown Asylum: A History and Memoir of Institutional Care” covers 1911 to 1971

Most Read