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AFPM International Petrochemical Conference - 2017 1 AIHA Investor Reception March 2017
AFPM International Petrochemical Conference - 2017
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AIHA Investor ReceptionMarch 2017
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• Canada's largest hydrocarbon processing center
• World scale facilities responsible for 43% of national basic chemical manufacturing
Alberta’s Industrial Heartland
• Detailed third party reports and studies, identifying key investment opportunities and competitiveness factors
• Emphasis placed on a focused investor experience: AIHA will host delegations and develop a program to meet the needs of investors
• Facilitate meetings with industry experts, potential partners, service providers, and government officials
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Specialized Investor Assistance
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Major ProjectsAlberta’s Industrial Heartland
North West Redwater Partnership - Sturgeon Refinery- First carbon capture enabled refinery built in the world, and first greenfield refinery
built in North America since the 1970s- 50,000 bpd of ultra low sulphur diesel- Potential to expand total capacity to 150,000 bpd
Inter Pipeline Ltd. - PDH/PP Facility- Purchased Williams Energy’s Canadian assets- 525 KTA PDH/PP facility- Locally sourced propane from oil sands upgrader ‘off gas’ and natural gas production
Pembina & PIC (Kuwait) Integrated PDH/PP Facility- Integrated 525 KTA PDH/PP facility- Locally sourced propane from natural gas production
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Western Canada Resource Potential
Alberta’s PLAY richin naturalgas liquids15
billion barrels NGL
4 billionbarrels NGL
7billionbarrelsNGL
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Pricing DifferentialsAECO vs Henry Hub
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Natural Gas $0.75 USD = 1.00 CAD
Price - March 6, 2017 YTD Average Price
AECO Spot ($USD/MMBtu)
$1.84 $2.00
Henry Hub Spot ($USD/MMBtu)
$2.50 $3.02
Differential USD(H.Hub – AECO)
$0.66 $1.02
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
USD
/MM
BTU
AECO vs Henry Hub
HH-AECO Differential Henry Hub Spot AECO Spot
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Ethylene Cash Cost
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0.0
20.0
40.0
60.0
80.0
100.0
120.0
Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18
US
CP
G
North American Propane Pricing
Mt. Belvieu - Edmonton Basis Mt. Belvieu Conway Edmonton
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Advisian Capital Cost Study
Project Scope: Comparative Capital Cost Study – AIHA vs USGC
Plant Type: Methanol
Capacity: 1 million tonnes per year
Technology: Two-step Reforming
Basis of Estimate: ACCEI Classification – Class 4 (+/- 30%)
Contract Execution: EPC
- USGC: Stick Built
- AIH: Stick Built
- AIH: Modular Construction (local shops)
*All figures USD
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Advisian Capital Cost Study
Summary of Cost Comparison
Account USGC Alberta Stick Built Alberta/Edmonton Modules
Material Cost $216,766,456 $218,935,818 $221,042,449
Labour Cost $64,541,249 $83,951,412 $77,427,705
Total Indirect Cost $123,561,939 $148,368,766 $116,253,064
Total Field Cost $404,869,644 $451,255,996 $414,723,218
Total Non-field Cost $211,765,138 $218,188,372 $210,029,453
Contingency $109,326,960 $119,888,864 $110,950,531
Total Project Cost $725,961,742 789,333,232 $735,703,202
Total Man Hours 2,174,028 2,098,800 1,935,708
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Competitive North American Market Access
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Transportation Costs - Liquids
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Transportation Costs - Containers
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Government of Alberta Support
• Petrochemical Diversification Program, 2016– Government program designed to incent petrochemical projects using
either methane or propane– Applicants submitted 16 projects representing $20 billion in capital
investment– Successful applicants
• Pembina & Petrochemical Industries Company - $300 million• Inter Pipeline Ltd. - $200 million
• Energy Diversification Advisory Committee (EDAC)
“The Energy Diversification Advisory Committee’s mandate is to engage Albertans and explore opportunities to increase the value of energy resources, create jobs and attract new investment. This includes such value-added ideas as partial upgrading, refining, petrochemicals and chemicals manufacturing.”
Contact Us
Garret Matteotti
Director, Business Development
www.industrialheartland.com
