Petrochemicals form the backbone of modern consumer society. They provide the plastics and other materials needed to make most of the products we depend on, everything from computers and cellphones to car tires and fertilizer — not to mention N95 masks and other personal protective equipment. Petrochemicals come from crude oil, natural gas, and/or NGLs like ethane and propane, of course, and a good way for an energy-producing area to add value to its raw hydrocarbons is to develop petchem plants nearby. Alberta, Canada’s leading energy-producing province, is making a new push to encourage such projects. Today, we discuss the latest provincial program and what it hopes to accomplish.

Hydrocarbon-rich counties, states, provinces, or entire countries can reap huge benefits by exploiting their natural resources — energy production and pipelines can support a large number of good-paying jobs and generate a lot of tax revenue. But being a mere supplier of raw hydrocarbons to far-away refineries, petrochemical plants, and manufacturing facilities that convert oil, gas, and/or NGLs into higher-value products isn’t nearly as lucrative as having those value-adding assets in place and operating within your borders. With abundant production of natural gas and especially NGLs such as ethane and propane, the Canadian province of Alberta would seem like a great location for the construction of a wide range of petchem plants, including steam crackers. In fact, Alberta’s local ethane production — plus ethane imports from the U.S. — for years have supported four large, ethane-consuming crackers in the province: Dow’s plant in Fort Saskatchewan, Nova Chemicals’ two plants in Joffre, and a plant co-owned by Dow and Nova, also in Joffre. Also, to add value to the ethylene coming out of those crackers, there are a number of polyethylene and ethylene glycol plants in Alberta — the more value added, the more jobs and tax revenue.

Roundabout! - Canada-To-Rockies Crude Flows Reshaping The PADD 4 Guernsey Market

Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.

As Alberta’s energy production continued growing through the 2010s, the provincial government has made a number of moves to encourage the development of in-province petchem production. Back in 2016, the province’s Petrochemicals Diversification Program (PDP) helped to incentivize and lay the groundwork for the construction of two multibillion-dollar, propane-consuming plants:

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About the song

"You Raise Me Up" was written by Rolf Lovland and Brendan Graham. The song became a hit in the UK when it was originally released by the Norwegian-Irish duo, Secret Garden, that Lovland was a part of. Record producer David Foster chose the song for Josh Groban to record and release on Groban's second studio album, Closer; it appears as the 12th song on that album. Released as a single in September 2004, "You Raise Me Up" went to #1 on the Billboard Adult Contemporary, and #73 on the Billboard Hot 100 Singles charts. The song has been recorded by more than 100 artists. Irish boy-band Westlife had a hit with the song in the UK in 2005. 

Closer was recorded between late 2001 and mid 2003, with David Foster, Walter Afanasieff, Klaus Derendorf, Mark Hammond, Leo Z, Mauro Malavasi, Eric Mouquet, Mark Portmann, and Jochem van der Saag producing. Half of the album's songs are sung in English, with the remainder sung in other languages. Released in November 2003, the LP went to #1 on the Billboard Top 200 Albums chart. It has been certified 5 X Platinum by the Recording Industry Association of America. Two singles were released from the album. 

Josh Groban is an American singer, songwriter, musician, actor, and record producer. He was discovered by record producer David Foster when Groban was a student at the Los Angeles County High School for the Arts. Groban has released nine studio albums, four live albums, two compilation albums, and 33 singles, and has sold more than 25 million records worldwide. He has appeared as an actor in television shows, movies, and on Broadway, and has won two Billboard Awards and one Grammy Award. Groban continues to record and tour, and has three consecutive nights booked at Radio City Music Hall in New York City in April of next year.

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