What Alberta’s 5 goals for natural gas mean for LPG

How Alberta, Canada’s five goals to become a top supplier of clean and responsibly sourced natural gas will affect the propane industry, according to the Canadian Propane Association (CPA):

1. Hydrogen exports: Alberta aims to export hydrogen and hydrogen products globally by 2040. CPA says this will encourage a drilling increase for natural gas and natural gas liquids, which contain propane.

2. Petrochemical manufacturing: Alberta also set a goal to be a top 10 producer of petrochemicals and diversify the portfolio of products manufactured. There are two polypropylene facilities already under construction in Alberta that will use propane as the feedstock, CPA says. If the government supports the advancement of more polypropylene facilities, there will likely be an increase in demand for propane.

3. Plastics recycling: Alberta aims to establish itself as the western North America center of excellence for plastics recycling by 2030. As polypropylene derived from propane is recyclable, this will create more demand for propane-based plastics and carbon fibers, according to CPA.

4. Industrial demand: Alberta seeks to grow natural gas demand with increased investment in processing infrastructure. Several power generation facilities in the province are also looking to convert to natural gas, but many rural and remote communities are unable to connect to the electricity grid, CPA says, making propane-based electricity generation a viable option.

5. Liquefied natural gas (LNG): The government intends to ensure its natural gas has access to Asian and European markets by 2030. But natural gas requires extensive and expensive infrastructure to transport, says CPA. Propane is highly transportable and can be more efficient and economical in Asian jurisdictions that don’t have the infrastructure needed to transport natural gas, according to the association.

Featured photo: LP Gas staff