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COMPETITIVE ANALYSIS OF THE CANADIAN PETROCHEMICAL SECTOR

Competitive Analysis of the Canadian Petrochemical Sector

Study Released November 24, 2016

Study No. 160

Globally, petrochemicals are frequently looked to as a means of economic diversification and value add in economies who rely heavily on oil and gas revenues. As the Canadian economy has been negatively affected by the fall in oil and gas prices, Canada’s petrochemical sector is an interesting one to look to for potential future growth. CERI’s “Competitive Analysis of the Canadian Petrochemical Sector” examines the availability of petrochemical feedstock in Canada for the C1 through C3 value chains through 2030, and expands on CERI’s September 2015 study, “Examining the Expansion Potential of the Petrochemical Industry in Canada” to assess Canada’s competitive position in comparison to other petrochemical producing jurisdictions. Canada will see large available volumes of methane, ethane and propane through the study period, both with and without LNG projects coming online. However, both Canadian petrochemical clusters (Alberta and Ontario) are not well positioned on the cost basis against more competitive US Gulf Coast and Saudi Arabia when considering plant gate costs and government incentives.

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