Report to Community 2016-2017
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REPORT TO COMMUNITY 2016-2017 Alberta’s Industrial Heartland Association ALBERTA’S INDUSTRIAL HEARTLAND ASSOCIATION /industrialheartland Suite 300, 9940 99 Avenue @ABheartland Fort Saskatchewan, Alberta, Canada, T8L 4G8 780.998.7453 #ABHeartland www.industrialheartland.com [email protected] ALBERTA’S INDUSTRIAL HEARTLAND ASSOCIATION IS A PROUD PARTNERSHIP OF WWW.INDUSTRIALHEARTLAND.COM VISION ALBERTA’S INDUSTRIAL HEARTLAND IS A GLOBAL LEADER IN HYDROCARBON AND ENERGY PROCESSING. MISSION AS A COOPERATIVE EFFORT, ALBERTA’S INDUSTRIAL HEARTLAND ASSOCIATION WORKS TO ENSURE THE COLLECTIVE OBJECTIVES OF ITS MUNICIPAL PARTNERS ARE ACHIEVED. THE ORGANIZATION WILL BE ADAPTIVE AND PROACTIVE IN BEING A CENTER OF EXCELLENCE FOR INVESTMENT IN VALUE ADDED PROCESSING. BUILDING ON THE STRENGTH OF ITS PARTNERSHIPS WITH GOVERNMENT, INDUSTRY AND LOCAL STAKEHOLDERS, THE ORGANIZATION WILL HELP CREATE THE CONDITIONS NECESSARY TO ACHIEVE THE OVERALL VISION. ALBERTA’S INDUSTRIAL HEARTLAND IS CANADA’S LARGEST HYDROCARBON PROCESSING REGION, WITH OVER $35 BILLION IN CAPITAL INVESTMENT TO DATE. TABLE OF CONTENTS MESSAGE FROM THE CHAIR 2 BOARD OF DIRECTORS AND ASSOCIATE MEMBERS 3 HEARTLAND HIGHLIGHTS 4 - 5 MAP OF LAND OWNERSHIP IN ALBERTA’S INDUSTRIAL HEARTLAND 6 - 7 PARTNERSHIPS: MUNICIPAL MEMBERS 8 - 9 PARTNERSHIPS: REGIONAL ORGANIZATIONS 10 - 11 PARTNERSHIPS: GOVERNMENT 12 PROJECT STATUS AT A GLANCE 13 NOTES 14 - 15 ALBERTA’S INDUSTRIAL HEARTLAND ASSOCIATION MESSAGE FROM THE CHAIR Over 18 years ago, our Association Of course, the success of the region is a result of efforts began as four municipalities believing well beyond our municipal partners. We are proud to our communities, province, and nation foster relationships with Chambers of Commerce, industry would derive great benefit from a associations, educational institutions, unions, economic collaborative, team approach to growth development agencies, and media. Our relationships with of our Heartland region. The City of corporations, government officials, and investors in foreign Fort Saskatchewan, Lamont County, countries have grown over time and remain critical as we work Strathcona County, and Sturgeon to secure further value added processing here at home. County created a municipal partnership As the economy stabilizes, we look forward to operations dedicated to planning, promoting, commencing at new facilities including the Sturgeon Refinery. and advocating for responsible and sustainable industrial We will continue promoting our region as a competitive area for development. With the addition of the City of Edmonton in global investment. We will also continue advocating for policies 2010 and three Associate members in 2011 - Bruderheim, supportive of value added investment that help diversify our Gibbons, and Redwater – Alberta’s Industrial Heartland energy economy, create sustainable jobs, and contribute to the Association has become a unique model of municipal strength of our local communities, our provincial economy and cooperation. We are recognized across the country for our our national interests. success at investment attraction and community connections. Our Association has succeeded because of a commitment With a shared vision and commitment to cooperation, our model to an economic vision that is founded on partnerships with has contributed to Alberta’s Industrial Heartland becoming industry, community, and government stakeholders. We are Canada’s largest hydrocarbon processing region, a provincial grateful for the support and contributions of all our partners and national economic driver. More than $35 billion in capital has and we look forward to building on the success of the region in been invested into the region, which generates significant returns the years to come. to our provincial economy and local communities. Sincerely, Despite this past year being a challenging economic time, innovative energy development continues. We were pleased to celebrate with our industry partners the completion of construction on several major projects and the additional full-time employment it created in our region. We also welcomed the announcement of the Government of Alberta’s Ed Gibbons Petrochemical Diversification Program and two new propane Chair, Alberta’s Industrial Heartland Association processing facilities that will diversify our energy exports and Councillor, City of Edmonton contribute to sustainable economic growth. Many factors are considered when companies make their investment decisions. Our team approach allows us to showcase the Heartland as a proven industrial energy cluster, in a province that values energy development. This year we promoted the region, our province, and our country as an ideal location for global investors from North America, Asia, Middle East, and others. We continue to advocate to our provincial and federal governments on issues such as energy infrastructure, regulation, environmental stewardship, and investment programs to ensure our region remains globally competitive within the global context. REPORT TO COMMUNITY 2016-2017 03 BOARD OF DIRECTORS AND ASSOCIATE MEMBERS BOARD OF DIRECTORS BOARD, STAFF, AND STAKEHOLDERS BID FAREWELL TO NEIL SHELLY After nearly a decade of service as AIHA’s Executive Director, we celebrated with Neil in September 2016 as he moved on to a new endeavor. Neil was instrumental during his time with the Association, advocating for energy value adding, promoting the region and province, and planning for infrastructure and services among our municipal partners. Neil’s influence and contributions to the region and province earned him the GALE KATCHUR TOM FLYNN distinction of being named on Alberta Venture’s annual list of Vice Chair, Mayor, 50 Most Influential Albertans in 2016. Alberta’s Industrial Sturgeon County Heartland Association Mayor, City of Fort Saskatchewan “Over the past eight years under Neil’s leadership, AIHA gained tremendous exposure among international investors, has been hailed as a model of cooperation in this region, and earned awards for being a top economic development agency. We are very appreciative of Neil’s dedication and expertise, and wish him well as he moves on to a new job.” Ed Gibbons, Chair of Alberta’s Industrial Heartland Association ROXANNE CARR WAYNE WOLDANSKI Mayor, Reeve, Lamont County Strathcona County ASSOCIATE MEMBERS MAYOR KARL HAUCH Town of Bruderheim DEPUTY MAYOR LOUISE BAUDER Town of Gibbons MAYOR MEL SMITH Town of Redwater (Image right) AIHA Chair Ed Gibbons (R) thanks Neil Shelly (L) for his years of service as Executive Director of AIHA with a basket of petrochemical-derived products that are commonly used every day. ALBERTA’S INDUSTRIAL HEARTLAND ASSOCIATION HEARTLAND HIGHLIGHTS Looking back through the past year, and ahead into the years that come, the following important highlights are notable to our municipal partnership as we pursue our vision of being a global leader in hydrocarbon and energy processing. PROPANE PROCESSING WILL BRING STURGEON REFINERY WILL BOOST VALUE TO REGION AND PROVINCE ECONOMY AND EMPLOYMENT Two new propane processing facilities are slated for Alberta’s The Sturgeon Refinery, currently under construction as seen Industrial Heartland. Major investments proposed by Inter in the photo below, is the first refinery in Canada to be built in Pipeline Ltd and Pembina Pipeline Corporation will add value over three decades. The facility will process Alberta bitumen to Alberta’s abundant and cost advantaged propane resources. into diesel, adding value to this resource. Both companies have plans for propane dehydrogenation The Conference Board of Canada released a report projects, the first of their kind in Canada. At a combined capital highlighting the substantial positive economic contributions cost of approximately $6 billion, the projects will generate a from the Sturgeon Refinery project. The mega project will total of 4000+ construction jobs, nearly 250 operational jobs, generate nearly $2 billion in government revenues, and and increases to local spending and tax revenues. support about 76,000 person years of employment in phase Both projects were recipients of royalty credits as part of the one construction alone. Once construction is complete and Alberta Government’s Petrochemicals Diversification Program the facility is operational, the operations phase is expected to announced on December 5 (as seen in photo below of press increase Canadian Gross Domestic Product by an average of conference). AIHA commends this program, a first of its kind $2.3 billion, result in 6,658 jobs per year of total employment for the Alberta Government. It speaks to the commitment of impacts, and generate a total of $385 million per year in developing our value added energy sector. government revenues. Looking ahead: Both companies indicate they expect to Looking ahead: Having hit peak construction in 2016, the be operational by 2021. AIHA is eager to see both projects Sturgeon Refinery project team is shifting focus as construction progress and will continue working to ensure plans move finishes and commissioning is scheduled for later in 2017. forward. AIHA will also remain an advocate for exploring Once operational, AIHA anticipates continued positive additional opportunities and initiatives to spur investment and benefits through local spending, employment, and support further diversify our energy sector. for Heartland communities. AIHA will remain an advocate for construction of Phase II, which will create thousands of jobs across the region and province.