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EXAMINING THE EXPANSION POTENTIAL OF THE PETROCHEMICAL INDUSTRY IN CANADA

Examining the Expansion Potential of the Petrochemical Industry in Canada

Study Released September 11, 2015

Study No. 153

The Petrochemical industry in Canada is dominated by the production of ethylene from ethane and then downstream derivatives produced from ethylene. This new CERI report examines the current competitive position of Canada in terms of attracting investment for Petrochemical expansion. The sector has seen some investment in the recent past but much less than other regions globally including the US and the Middle East. The study demonstrates that the principle consideration in determining whether a region is cost competitive is the feedstock price, and second, feedstock availability in sufficient quantity. North America has this advantage over the rest of the world. The advantage is increased when there is a large price differential between natural gas and oil. The reason is that the rest of the world uses mainly oil-based feedstocks for their petrochemical production. North America and the Middle East predominantly use natural gas.

Full Report Executive Summary