Building Our Energy FuturePresentation to Fort Saskatchewan Chamber of Commerce

October 5, 2016

Our Time Together #ABHeartland

Alberta’s Industrial Heartland: Who, What and How

Opportunities: Globally & Here at Home

Challenges

Call to Action

AIHA: Partnership and Purpose

Wayne Woldanski, Gale Katchur (Vice Chair), Tom Flynn, Roxanne Carr, Ed Gibbons (Chair)

#ABHeartland

AIHA: Partnership and Purpose #ABHeartland

Investment Attraction & Retention

• Global Network

Policy Advocacy

• GOA/GOC

Stakeholder Engagement

• Local /Regional/National

Alberta’s Industrial Heartland

• 582 square Kilometers of industrial land

• Western Canadian Hub for oil and gas logistics: pipeline, rail, roadway

• Value-Added products bound for global markets: petrochemicals, fuel, fertilizer, +++

• Synergies allow for waste product of one company to be feedstock for another

#ABHeartland

Alberta’s Industrial Heartland

• $30 billion in investments

• 40+ Companies

• 6,700 full time employees

• All trades employed

• $1.5 billion in local spending

#ABHeartland

Alberta’s Value-Added Economic Engine

The AIH Neighborhood

Alberta at a Cross Roads #ABHeartland

• Uncertainty in oil and gas

• Rising unemployment

• Adapting to new government directions

• Climate Change pressures

• Market access for energy products

• Diversification competition

1. Better return for our commodities as they are developed further down the value chain.

2. Continued development of value added products opens markets and creates local jobs.

3. Increasing global demand for petrochemicals.

4. AIH is a proven as a centre for oil and gas production– we can do more here at home.

#ABHeartlandNew and Emerging Opportunities

The Petrochemical Industry

• Oil and gas is the base of the petrochemical industry

• Global sales expected to exceed$791 billion by 2018

• Strong fundamentals at home support further development of Alberta’s petrochemical sector

#ABHeartland

Alberta’s Next Investment Wave Potential #ABHeartland

Project Type Capital Invested Construction Jobs Operating Jobs

Methanol (x2) $ 5.0 billion 5,000 500

Fertilizer/Urea (X1) $ 1.5 billion 2,000 150

Ethane Cracker (X1) $ 6.5 billion 5,000 250

Partial upgrader (x3) $ 3.5 billion 3,000 300

Small Scale GTL (X2) $ 1.0 billion 1,000 150

Propylene (x2) $ 6.0 billion 5,000 300

NWRP (phase 2) $ 8.0 billion 8,000 250

TOTALS $31.5 billion 29 000 1900

• Over $25 billion in petrochemical development potential

Currently engaged with global companies interested in investing in our region

• Alberta Petrochemical Diversification Program, a $500 million provincial program, has attracted 16 applicants. Decision pending.

#ABHeartlandInvestment Opportunity in AIH

Current Challenges

1. Competition from other regions to attract value added investments

2. Generally higher construction costs

3. Current regulatory processes

4. Capacity limits of current transportation infrastructure

#ABHeartland

Actions to Improve AIH Competitiveness

• GOA Programs: e.g. Petrochemical Diversification Program(PDP)

• GOA Interface: Investors & Stakeholders

• Streamlined regulatory processes without compromising standards

• Clear, Consistent Rules

• Timely decision making

#ABHeartland

The Call to Action

Be a strong voice to provincial & federal governments

• For value-added energy development

• That creates local business and employment opportunities

• It is needed, proven and results in an economic win for Alberta and Canada.

• Talk to MLA’s, MP’s, Members of Cabinet & departmental officials

#ABHeartland

The Call to Action

Where possible engage in value-added energy policy discussions

• Speak to those issues that can significantly improve our region’s competitiveness:– a longer term value-added strategy

– timely decisions

• Continue to engage in policy submissions to groups such as Alberta Chambers of Commerce; GOA’s Energy Diversification Advisory Council ( Pending announcement)

#ABHeartland

In Summary: Moving Forward

• Fundamentals are in place to build on our energy strengths and diversify the economy.

• New investment and continued development in the Industrial Heartland creates positive impacts here at home, across the province and throughout our country.

• Your business voice will help our region to be globally competitive.

#ABHeartland

Gordon HarrisExecutive Director

gord@industrialheartland.com

Pam CholakDirector, Stakeholder Relations

pamela@industrialheartland.com

www.industrialheartland.com

#ABHeartland

#ABHeartland