CALGARY — A $4.5-billion Alberta project to turn propane into plastic will help deliver world prices to land-locked western Canadian oil and gas producers, says Calgary-based Pembina Pipeline Ltd.The company announced Monday it has decided with its joint venture partner, Kuwait’s Petrochemical Industries Co., to go ahead with their proposed integrated propane dehydrogenation plant and polypropylene upgrading facility northeast of Edmonton.The plants’ plastic pellets will be sent by rail and shipping containers to manufacturers around the world to be turned into recyclable products used in automobiles, medical devices, food packaging and home electronic appliances. Pembina delays final investment decision on $3.5B plastics plant, seeks partner for LNG project Alberta joins petrochemicals boom with $2B methanol project proposal “Sanctioning of the PDH/PP facility is the largest step taken to date by Pembina in executing its strategy to secure global market prices for customers’ hydrocarbons produced in Western Canada, and provides another exciting platform for future growth,” said Pembina CEO Mick Dilger in a news release.Petrochemical Industries CEO Mohammed Abdullatif Al-Farhoud added in the same release that the facility is “ideally aligned with PIC’s continued pursuit of sustainable and globally diversified growth.”Pembina was awarded $300 million in royalty credits in 2016 as an Alberta government incentive for the project.At the same time, Calgary-based Inter Pipeline Ltd. got $200 million in credits for its nearby $3.5-billion polypropylene project, which is now under construction.The credits allow producers to reduce their royalty payments to the government and, as such, can’t be claimed by the petrochemical plants themselves.However, Pembina said Monday it has made agreements with producers to “monetize” 80 per cent of the credits over the first several years of operation of the facility, which is expected to be in-service in mid-2023.Pembina’s share of the project’s capital costs will be $2.5 billion including a 50 per cent interest in the joint venture, which will own the plants, and a 100 per cent stake in the supporting facilities.The plants will be located next to Pembina’s Redwater fractionation complex, which extracts liquids such as propane, ethane and condensate from natural gas.They will consume about 23,000 barrels per day of propane and have nameplate capacity of 550,000 tonnes of polypropylene per year.The project is part of a resurgence in spending on industrial chemical industry projects in Canada. A recent members survey by the Chemistry Industry Association of Canada projected capital spending would jump by 65 per cent to $1.9 billion this year, the highest since $2.2 billion in 2014 and third-highest in a decade.The survey suggested employment would rise by about four per cent or 640 jobs to 17,670 in 2019.Last year, Alberta announced two new programs worth $2.1 billion in royalty credits, grants and loans to encourage more investments in manufacturing plants, as well as facilities to produce petrochemical feedstock. The applications deadline was Oct. 1 and announcements are expected soon.The new plants are opposed by environmentalists who point out very little plastic is recycled in Canada — almost 90 per cent winds up as litter or in landfills.But Alberta’s NDP government says upgrading hydrocarbons at home instead of shipping raw product into the United States allows the province to ensure it has among the lowest emitting petrochemical producers in the world.
“This kind of reduction is unprecedented,” Mrs Roberts said.So far 6,000 families in Leeds have been given the lessons, with 625 children a year “saved” from obesity. The review by Prof Dame Sally Davies will examine which measures could help to meet targets to halve rates of childhood obesity by 2030.Research involving Oxford University found that the eight-week programme In Leeds showing parents how to “take charge” has been linked to a significant drop in obesity levels.The scheme, which costs councils £50 per family, is aimed particularly at deprived areas.Ministers have said efforts to prevent obesity in toddlers will form a central part of a Green Paper this summer. The Government’s former obesity tsar said the results were “astonishing”. Obesity rates among five-year-olds in England remained unchanged between 2013-14 and 2016-17, at around 9.4 per cent.However, rates in Leeds dropped from 9.4 per cent to 8.8 per cent over the same period, according to the study presented at the European Congress on Obesity in Glasgow. The Health Secretary has backed parenting classes to tackle Britain’s obesity epidemic ahead of the launch of a national review.Matt Hancock said he believed in “targeted support” for families, highlighting a scheme in Leeds which has been the first English city to see a fall in the number developing weight problems.The eight week programme aims to show parents how to “take charge” of their children’s diet, and encourage healthy habits.Today Mr Hancock will ask the country’s chief medical officer to review the evidence on which measures work best to combat obesity.Last night he told The Daily Telegraph: “I want targeted support and I want lots more support in schools. Leeds is the only place in the UK where obesity levels are falling. It is targeted interventions at the people who really need support, rather than taking the same approach to everybody,” he said.Mr Hancock – who was last week teased for his own habits when caught on camera eating a waffle – added: “There is some who say we need blanket measures across everybody, but everybody enjoys the odd caramel waffle from time to time. All things in moderation, but we do need targeted support for people who particularly need our help.” Kim Roberts, chief executive of the Health Exercise Nutrition for the Really Young scheme adopted in Leeds, told how parents are encouraged to be “in charge” of their families. She said: “We want parents to be able to hold boundaries, so they are able to say ‘no’ to pester power around snacks.”Leeds was compared with 15 other cities in England – none of which recorded such a turnaround. Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings.