Chemicals & Petrochemicals
Few people know that Alberta is a leading petrochemical manufacturing province. Alberta is home to four major ethylene plants with a combined annual production capacity of four million tons. Two of these plants - at Joffre and Fort Saskatchewan - are among the world's largest.
Ethylene is the basic building block for a myriad of bulk chemicals and plastics including polyethylene, polyvinyl chloride, ethylene glycol, styrene, higher olefins, surfactants, detergent lubricants and thousands of consumer items found in everyday life. The most significant ethylene derivatives produced in Alberta are polyethylene and ethylene glycol.
Petrochemical production is one of Alberta’s largest manufacturing industries. In 2007, the industry accounted for sales of over $14 billion and exports of $7.2 billion to global markets such as the USA, China, Korea, Mexico, Hong Kong, Taiwan and Japan.
The viability of the industry, which directly employs more than 7,000 Albertans, is dependant on access to a secure and affordable supply of natural gas liquid (NGL) feedstock, especially ethane.
The Alberta Government has been working with stakeholders to secure and expand sustainable feedstock supplies and to find ways to enhance opportunities in the petrochemical sector.
The petrochemical industry has invested approximately $9 billion in Alberta since the 1970s substantially increasing production capacity for ethylene, polyethylene, ethylene glycol and linear olefins. For example, ethylene production has nearly doubled as a result of expansions at both Joffre and Fort Saskatchewan.
Detailed information about the Chemicals industry in Alberta is available in the Chemical Operations Directory (PDF, August 2009).
Industry Segments
The chemical industry has the following four segments:
Petrochemicals
These are intermediate chemicals derived from petroleum, hydrocarbon liquids or natural gas, such as: ethylene, propylene, benzene, toluene and xylene. Leading Alberta operators in this segment include:
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. Leading Alberta operators in this segment include:
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. Leading Alberta operators in this segment include:
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. Leading Alberta operators in specialty and fine chemicals segment include:
Impact on Alberta Economy
The chemical industry is a major contributor to Alberta's economy. As a result, Alberta suppliers also have the expertise to satisfy customers in the global marketplace. The industry provides employment opportunities to graduates from Alberta's 35 post-secondary learning institutions. The 7,773 engineers, scientists, technologists, operators, tradesmen, and support personnel working in Alberta's chemical industry share an annual payroll of $526 million.
Date Updated: Sep 09, 2009
RDP-861