CPA Supports Alberta’s Natural Gas Vision and Strategy

The Canadian Propane Association (CPA; Ottawa) congratulates the government of Alberta on its long-term Natural Gas Vision and Strategy. The Alberta government had earlier announced its vision to transform Alberta into the No. 1 supplier of clean, secure, and responsibly sourced natural gas in Canada and internationally.

“Alberta’s strategy does more than support one of the fastest growing sources of energy in the world, it also provides support for the expansion of propane use and diversification,” says Nathalie St-Pierre, president and CEO of CPA. Here’s how the five goals of Alberta’s new strategy will affect the propane industry:

Hydrogen Exports. The government’s goal is to export hydrogen and hydrogen products across Canada, North America, and globally by 2040. The propane industry is satisfied that this will encourage an increase in drilling for natural gas and natural gas liquids, which contain propane. This propane can then be used for electricity generation in remote communities, home heating, appliances, agriculture, petrochemicals, export, and transportation.
Petrochemical Manufacturing. Alberta’s goal is to become a global top 10 producer of petrochemicals and diversify the portfolio of products manufactured. This consolidates propane’s advantage with the two polypropylene facilities already under construction in Alberta, which will use propane as the feedstock. If the Alberta government supports the advancement of more polypropylene facilities, this will provide an increase in demand for propane.

Plastics Recycling. Alberta aims to be established as the Western North America center of excellence for plastics recycling by 2030. Again, as polypropylene derived from propane is recyclable, unlike many other plastics, this will create more demand for propane-based plastics and carbon fibers.

Industrial Demand. Alberta seeks to grow the demand for natural gas and natural gas liquids with increased investment in natural gas processing infrastructure. While a number of power generation facilities in the province are also looking to convert to natural gas as a fuel source, many rural and remote communities are unable to connect to the electricity grid. Propane-based electricity generation is an excellent option for these communities. Plus, an increase in natural gas transportation infrastructure means more capacity for propane transport.

Liquefied Natural Gas (LNG). The government’s goal to ensure Alberta’s natural gas has access to Asian and European markets through two to three additional large-scale LNG projects by 2030 is also on the table. While these projects are good, natural gas requires extensive and expensive infrastructure to transport. Propane is highly transportable and can be used more efficiently and economically in many Asian jurisdictions that don’t have the infrastructure needed by natural gas. Currently two export terminals are supplying propane to Asian markets and CPA believes the Alberta government will continue to support these efforts.

With its more than 400 members, CPA is the national association for a growing, multibillion-dollar industry that impacts the livelihood of tens of thousands of Canadians. Its mission is to promote a safe and thriving propane industry that plays a vital role in Canada’s energy sector.

SOURCE: The Weekly Propane Newsletter, October 22, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.