Dow Inc. says it is delaying construction of a nearly $9 billion net-zero petrochemical project northeast of Edmonton because of expected weak market conditions.
The company says it’s still committed to the Path2Zero project in Fort Saskatchewan, Alta., but that after a comprehensive review it has decided to push back the timeline.
Dow says it sees an expected lower-for-longer earnings environment ahead, so it won’t need the project’s output as early as it thought, and will hold off on restarting construction until market conditions improve.
It says the delay means it is holding off on about US$1 billion in capital spending this year.
Dow bills its Path2Zero facility as the world’s first net-zero Scope 1 and 2 greenhouse gas emissions-integrated ethylene cracker and derivatives site.
It says the project is expected to create about 5,000 jobs at peak construction and about 450 full-time jobs once operational.
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