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The article offers a look at the state of the chemical industry in Canada as of August 2011. According to the Chemical Industry Association of Canada (CIAC), the country accounts for 1.7 percent of the global chemical industry. The economic impact of shale gas development in the U.S. are highlighted. One of which is that it reduced natural gas prices and drilling profits in North America. Several deals are also ongoing in Alberta to ensure balanced supply of ethane by 2013.

The article highlights the efforts of petrochemical producers in Canada to diversify their feedstock base to continue to make the country an appealing market for expansion despite the threat posed by ethane shortage. Canadian producer are confronting the shortage due to decreased natural gas flows through Alberta. Producer are looking at new sources of natural gas liquids from shale gas production in the U.S. as inexpensive feedstock. They are also considering importing ethane from northern U.S.

Focuses on the impact of high natural gas prices on major segments of petrochemicals industry in Canada and their search for sources of natural gas. Prospects for future petrochemicals investment in Alberta; Efforts of petrochemicals leaders to search for sources of natural gas; Effect of the proposed ban on methyl-tert-butyl ether in California on methanol business in Canada; Suppliers of gas and ethane in Canada. INSETS: CN Seeks Support for Merger;CXY Chemicals Breaks Free of OxyChem;Recruitment, regulations Test Projects.

The article discusses Canada's natural gas prices which is expected to remain high up to 2006 with little change in production. Both the U.S. and Canadian gas market will remain supply-constrained in 2005-2006 while demand is expected to be resilient to higher gas prices due to its merits as a clean-burning fuel. It indicates a tight ethane supply and cites several options to gain access to ethane supply such as upgrading existing straddle plants and new infrastructure.

The article discusses how the plastics and chemical company Nova Chemicals is augmenting its ethylene and polyethylene operations and seeking alternative feedstock supply sources as of May 2012. Topics include Nova's cracker upgrades in Corunna, Ontario and Joffre, Alberta; the growth of demand in the North American chemical industry; and Nova's completion of several ethane supply agreements for a cracker plant.

The article reports that the U.S. is now shipping ethane to Canada, as per the U.S. Energy Information Administration, and also mentions that ethane began flowing from shale-gas-rich North Dakota area along the Vantage pipeline to the Alberta Ethane Gathering System in Canada.

The article offers information on solutions for piping the ethane, including NOVA Chemicals Corp. and Buckeye Pipeline Co. LP will propose construction of a pipeline to ship ethane and other Natural Gas Liquids to Sarnia in Canada.

The article reports that rising volumes of coal-bed methane in Canada's Alberta pipeline system will reduce the volume of ethane feedstock to the province's petrochemicals industry according to Canada's Nova Chemicals. Nova relied on ethane extracted from natural gas to feed its petrochemicals complex at Joffre, Alberta and wanted the province's energy regulator to address the issue. Nova said that shipping methane on the system would need to be managed to reduce the potential impact on ethane users.