Nauticol Energy announced it will build a $2 billion methanol facility in northwestern Alberta. The Grande Prairie methanol plant is expected to create about 3,000 direct and indirect jobs, including 1,000 construction jobs and over 200 direct permanent jobs. Nauticol Energy graphic.
Notley gov’t supports Grande Prairie methanol plant with up to $80M in future royalty credits
Calgary-based Nauticol Energy announced on Wednesday that it will build a $2 billion methanol plant near Grande Prairie. The company says the facility will be Canada’s largest methanol plant and construction will begin in 2020. The commercial operational date is set for 2022.
Nauticol Energy’s president and CEO Mark Tonner said “This world-scale project will expand Alberta’s petrochemical value chain by transforming the region’s abundant natural gas resources into a highly valued product that will reach growing global methanol markets.”
Methanol is a building block of a number of everyday consumer and industrial products such as paints, plastics, electronics, shoes and furniture and is used widely in energy applications such as biodiesel and fuel blending, and as an alternate fuel.
“By seizing these opportunities today, we’re making sure our kids and grandkids have new opportunities in a stronger, more diversified energy sector,” said Alberta Premier Rachel Notley.
Global methanol demand is growing at a rate of five per cent annually, with China and Northeast Asia driving the demand. Liquid methanol will move to North American markets via rail and to growing Asian markets by port facilities on the West Coast of British Columbia.
The development of the project will be phased to include three identical methanol units, each capable of producing one-million metric tonnes of methanol per year. The province will support phase one with up to $80 million in future royalty credits as part of the Made-in-Alberta energy strategy.
Once fully operational, the facility will use about nine-million cubic metres (300-million cubic feet) per day of natural gas.
“There’s unlimited potential here in Peace Country to build on our traditional strengths in oil and gas,” said Margaret McCuaig-Boyd, Alberta Minister of Energy.
Premier Notley said “One year ago, we highlighted the great potential this region has for value-added upgrading, and today our Made-in-Alberta plan is getting results, creating jobs around Grande Prairie and across the province.”
According to Nauticol, the company has a written agreement with the Western Cree Tribal Council member nations for potential future development and investment opportunities. The three First Nation communities of the WCTC are Duncan’s First Nation, Horse Lake First Nation and Sturgeon Lake Cree Nation.
Tonner said “Nauticol is committed to meaningful, innovative collaborations, smart engineering and sustainable and low-cost production.”
The Grande Prairie methanol plant be located about 10 kilometres south of Grande Prairie and construction of the facility will create approximately 3,000 direct and indirect jobs, including 1,000 construction jobs and over 200 direct permanent jobs.
At full build-out, approximately 1,000 upstream jobs will be created and supported as well as 1,000 downstream jobs to support facility operations.
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