About the industry

Alberta has one of the largest petrochemical industries in Canada, characterized by modern, world-scale plants, efficient transportation systems, and access to the third largest crude oil reserve in the world and significant natural gas reserves. There is enormous potential for investors who are interested in tapping into Alberta's vast energy resources to produce refined petroleum products and petrochemicals.

The petrochemical industry has invested approximately $9 billion in Alberta since the 1970s substantially increasing production capacity for ethylene, polyethylene, ethylene glycol and linear alpha olefins. Additional investments are underway that provide alternate feedstock supply to the industry through the capture of upgrading and refinery off-gases to extract the rich NGLs for petrochemical development.

Industry fast facts
2010

• Annual Revenues: $25.2 billion
• Value of annual exports: $8.4 billion
• Number of Companies: 275
• Number of Employees: 13,000

• Alberta’s chemicals and petroleum refining industry is the province’s largest manufacturing sector with revenues of $25.2 billion (2010), accounting for 40% of Alberta’s manufacturing revenues. 
   
• In 2010, the sector employed approximately 13,000 employees in 275 businesses; most of these companies (82%) are small, with less than 50 employees.
• About 30% of this sector’s output is exported internationally. In 2010, exports were valued at $8.4 billion, a 20% increase from 2009.
• Top five Alberta exports: polyethylene (and other ethylene polymers), ethylene glycol, urea, anhydrous ammonia, and styrene.
• Ethylene crackers owned by NOVA Chemicals and Dow Chemical at Joffre and Fort Saskatchewan are among the largest ethane-based crackers in the world.

Areas of expertise

The Alberta chemical industry is made up of the following four segments:

Petrochemicals: These are chemicals derived from petroleum, hydrocarbon liquids or natural gas, such as: ethylene, propylene, benzene, toluene and xylene.

Fertilizers: Fertilizers are natural and synthetic materials, including manure and nitrogen, phosphorus, and potassium compounds, spread on or worked into soil to increase its capacity to support plant growth.

Inorganic Chemicals: This industry produces a broad class of substances encompassing all those that do not include carbon and its derivatives as their principal elements. However, carbides, carbonates, cyanides, cyanates, and carbon disulfide are included in this class. The products produced by this industry are used in industrial processes. Examples include chlor-alkali products as well as carbon black products.

Specialty and Fine Chemicals: Specialty chemicals are chemicals produced for specialized uses. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from hydrocarbon feedstocks, are the most common. However, both are produced in a chemical plant. Some examples of specialty chemicals are adhesives, additives, antioxidants, corrosion inhibitors, cutting fluids, dyes, lubricants, pigments, etc. Fine Chemicals are pure, single chemical substances that are commercially produced with chemical reactions into highly specialized applications. Fine chemicals produced can be categorized into active pharmaceutical ingredients and their intermediates, biocides, and specialty chemicals for technical applications.

Date Updated:
RDP-2028