GRAND PRAIRIE, ALTA. — The Alberta government has announced Nauticol will develop a $2-billion methanol plant just south of Grande Prairie.
The project will go through three development phases to build three identical methanol units, each capable of producing one million metric tonnes of methanol per year.
The facility will use nine million cubic metres per day of natural gas once operational.
The Government of Alberta will support the first phase of the project with up to $80 million in future royalty credits as part of its Made-In-Alberta energy strategy.
“Our Made-in-Alberta for Albertans project will be Canada’s largest methanol facility. This world-scale project will expand Alberta’s petrochemical value chain by transforming the region’s abundant natural gas resources into a highly valued product that will reach growing global methanol markets. Nauticol is committed to meaningful, innovative collaborations, smart engineering and sustainable and low-cost production,” Nauticol president and CEO Mark Tonner said in a statement.
“There’s unlimited potential here in Peace Country to build on our traditional strengths in oil and gas. One year ago, we highlighted the great potential this region has for value-added upgrading, and today our Made-in-Alberta plan is getting results, creating jobs around Grande Prairie and across the province,” Provincial Minister of Energy Margaret McCuaig-Boyd added.
Nautical has a written agreement with the Western Cree Tribal Council member nations for potential future investment and development. The WCTC consists of Duncan’s First Nation, Horse Lake First Nation and Sturgeon Lake Cree Nation.
“As we fight to get top dollar for the resources owned by all Albertans, Nauticol’s major investment in the Peace region means thousands of good jobs and more upgrading of our raw resources into the products the world needs right here at home. By seizing these opportunities today, we’re making sure our kids and grandkids have new opportunities in a stronger, more diversified energy sector,” Alberta Premier Rachel Notley said.
The Made-in-Alberta energy strategy is a $3 billion plan to support energy diversification. It focuses on partial upgrading of bitumen and petrochemical processing that adds value to natural gas liquids. Support for the Nauticol plant falls under the petrochemical part of the strategy.
Construction of the first phase is expected to begin in 2020 and a commercial operational date is set for 2022.