The project will expand Dow’s existing facility at Fort Saskatchewan
The Alberta Petrochemicals Incentive Programme pledged approximately US$1.3 billion, while the federal government committed up to US$288 million through its carbon capture and clean hydrogen tax credit program. Site preparation, utility installation, and administrative building construction have already begun. The facility was expected to produce around 3 million tonnes of polyethylene and ethylene derivatives annually for export.
Dow’s chief executive, Jim Fitterling, stated during an earnings call: “This decision supports our near-term cash flow and adjusts the project timing to align with the market recovery. We remain committed to the long-term strategic rationale of the project and the growth upside that it will enable in targeted applications like pressure pipe, wire and cable, and food packaging.” The delay is attributed to anticipated market challenges, including potential trade disruptions.
The “Path2Zero” project’s first phase was initially slated for completion by 2027, with the second phase targeted for 2029. Alberta’s access to low-cost natural gas and ethane made it an attractive location for the facility. Dow and other chemical companies have faced higher costs for raw materials and energy, alongside softer demand in some markets, contributing to the decision to pause the project.
The company emphasized its ongoing commitment to the project’s long-term goals, adjusting its timeline to better match improving economic conditions.
