Pembina, PIC approve $3.4bn petrochemical complex in Alberta, Canada

WCN Editorial Team 5 Feb 2019 NORTH AMERICA ENERGY & UTILITIES

Pembina Pipeline and its partner Kuwait’s Petrochemical Industries (PIC) will move forward with the construction of a C$4.5bn ($3.43bn) worth integrated petrochemical complex in Alberta, Canada.

A final investment decision has been taken by the two companies in this regard, paving way for the construction of a propane dehydrogenation (PDH) plant and a polypropylene (PP) upgrading facility (PDH/PP Facility). The project will be owned by their joint venture Canada Kuwait Petrochemical (CKPC).

The PDH/PP Facility will be constructed inside the Alberta Industrial Heartland in Sturgeon County, near the Redwater fractionation complex (RFS) owned by Pembina.

Expected to be operational in mid-2023, based on receipt of environmental and regulatory approvals, the petrochemical facility will produce 550,000 tons per annum of PP.

Considered to be a high-value polymer, PP is used in various finished products such as automobiles, food packaging, medical devices and home electronic appliances.

The new petrochemical facility will use about 23,000 barrels per day of local propane from RFS and other regional fractionation plants as its feedstock.

Pembina president and CEO Mick Dilger said: "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.

"Today's announcement is the culmination of many years of hard work with our partner to develop a project that is well positioned to capitalize on Alberta's abundant supply of propane and undertake value-added processing that benefits all of Pembina's stakeholders, the Province of Alberta and indeed all of Canada.”

On its part, Pembina will invest C$2.5bn ($1.9bn) in the PDH/PP Facility in line with its 50% stake in CKPC. As per an agreement with PIC, the Canadian pipeline transport company will provide services under a long-term, take-or-pay arrangement from the new facilities.

PIC, on the other hand, has the right to market the PP produced from the petrochemical facility as per an agreement signed with its joint venture partner in last May.

Last week, Pembina approved a $382m expansion of Peace pipeline system in Alberta. Under this expansion project, the company will construct new 10 and 16inch pipelines in the Gordondale to La Glace corridor of the Canadian state in addition to six new pump stations or terminal upgrades between Fox Creek and Gordondale.

---------------------------------------------------------------------------------------------------------------------------------

Image: Pembina, PIC will construct a $3.4bn PDH/PP Facility in Alberta. Photo: courtesy of Petrochemical Industries Company K.S.C.

With 11 websites and newsletters covering all the key areas within the construction industry, World Construction Industry Network is the leading global construction information resource. READ ABOUT US
PRIVACY POLICY

STAY IN TOUCH!

LATEST TWEETS

World Construction Network | www.worldconstructionnetwork.com is a product of GlobalData. Copyright © 2019 GlobalData. All rights reserved.