Margaret


McCuaig-Boyd Minister of Energy


acquiring a long-term supply of natural gas, determining the price of carbon with the new provincial tax, securing suitable transportation to Asia, and locating a partner.


Production from the plant is shipped to B.C. and the northwestern U.S. Here, it is primarily used to make formaldehyde used in the wood products industry or for gas pipeline dehydration. Production from an expanded facility would be sold in Asia, primarily to China, for making methanol-blend gasoline for vehicles.


Floren’s positive outlook on strong 2017 production rates leading to higher prices. Unfortunately, low gas prices make many wholesalers hesitant to sign long-term contracts.


Methanex still sees


“Methanex still sees quite a bit of potential in Medicine Hat,” says Clugston. “They’re happy that construction costs have come down a little bit. They’re happy with the long- term price of gas. They love the workforce here, the openness of the community. Medicine Hat is a welcoming community to the petrochemical industry. Methanex is a great community partner: they re-invest and they’re very charitable in Medicine Hat. From all accounts, they’re still working on that expansion.”


The cost of twinning the plant is estimated at US$1.2 billion. Expansion would generate approximately 500 construction jobs and add 50 more full-time jobs on top of the 125 existing positions. It would also increase the plant’s output to 1.3 million tonnes per year from its current 0.6 million tonne capacity.


quite a bit of potential in Medicine Hat.


Mechanical difficulties late last fall resulted in a fourth quarter production of 92,000 tonnes, much lower than the plant’s 155,000 tonne capacity for three months. As a result,


the plant will be undergoing some capital upgrades and maintenance in the first quarter of 2017.


Certainly, the growing world demand, particularly in China where, as of 2014, eight per cent of vehicles including 160,000 taxi cabs run on M85, a methanol (85 per cent) and natural gas (15 per cent) blend, gives Hatters reason to be optimistic, as does


“I am very, very keen and would love to see the Methanex expansion go ahead,” says Clugston. “The city has offered Methanex any help we can. We have a MOU with them, a memorandum of understanding, that we signed with them that basically said for any expansion we would give them electricity at cost, water, sewer and would help to facilitate on our end any services that they would need for an expansion.” ❚


further into 2017, I’m hearing more and more optimism for the future of our energy sector and our province, particularly in southeast Alberta.


T


Part of that is due to the resilience of Albertans. In the face of the record- low global oil prices, our people have responded with hard work and a commitment to innovate and make our energy industry even stronger.


I’m proud to say that during this time, our government has stepped up to create a strong set of policies and actions helping to create jobs and investment throughout Alberta.


The response to our Modernized Royalty Framework from the oil and gas industry has been overwhelmingly positive. This is the new framework we announced more than a year ago that came into force January 1 of this year. It’s designed to take into account that our industry needs to have the ability to adjust to new technology and new market opportunities for oil and gas.


We worked with Albertans, industry and a wide-range of experts to create a royalty system that’s a win for everyone – a win for industry, a win for investors and a win for Albertans.


Today, I can say with the utmost confidence — we delivered!


Rig counts across Alberta were up significantly at the start of this year compared to the same period last year, and many producers applied to opt-in early to the framework because of the improvements it has created. Major investments have been announced for our oilsands, and orders are picking up in our manufacturing hubs.


We know when the rigs are running,


he past two years have been tough for the hard-working men and women in Alberta’s oil patch. But as we head


all of our communities benefit. It’s estimated that each active drilling rig creates 135 direct and in-direct jobs for Albertans.


We have also begun serious work to diversify and strengthen our energy sector by appointing our Energy Diversification Advisory Committee.


The committee’s job may sound simple but it’s not.


They’ve been tasked to find ways to add value to our energy resources here at home.


This includes looking at what we can do to support what’s called the value chain; they’re looking at things like partial upgrading technology and opportunities for more petrochemical manufacturing in Alberta. Medicine Hat is more than familiar with the petrochemical industry and the value it can bring to communities.


Thanks to our Climate Leadership Plan, we have also shifted the conversation about Alberta. We’re no longer seen as outliers by the rest of the world, but rather leaders in the issue of climate change. Any business owner will tell you that having only one customer for your product is bad for business, and this progressive shift in Alberta has helped secure new pipeline approvals and improved market access for our resources. We were glad to see federal approval of the Trans Mountain expansion pipeline which will provide access to Asian markets, as well as the Line 3 Replacement into the United States.


These developments will benefit all Albertans no matter where you live.


The downturn has tested us all. There’s still work to be done, and like you, our government is not afraid of hard work. I believe Alberta’s future will be bright for many years to come. ❚


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