Friday, April 15, 2016
Pembina Pipeline Corp. (Calgary) is conducting a joint feasibility study with Petrochemical Industries Co. KSC (PIC), a subsidiary of Kuwait Petroleum Corp., for the evaluation of a world-scale combined propane dehydrogenation (PDH) and polypropylene upgrading facility in Alberta. The project represents an opportunity to develop new market demand for propane in Alberta.
Over the past decade, about 85% of Alberta’s propane production has been exported across North America. Developing Alberta-based infrastructure will increase local propane demand benefitting oil and gas producers, as well as the province, by increasing regional economic activity and the tax base. The project could consume 35,000 bbld of propane and produce up to 800,000 metric tonnes of polypropylene a year.
Polypropylene would be transported in a pellet form to markets across North America and internationally. Polypropylene is one of the world’s most commonly used polymers. Traditional uses include automobile plastics, medical supplies, home appliances, transparent containers, and numerous other applications. With access to the largest supply of propane in the Western Canadian Sedimentary Basin, Pembina is poised to facilitate development of the project. Once construction of the company’s third fractionator is completed, Pembina will have more than 200,000 bbld of capacity and will control about 60,000 bbld of propane supply in the Fort Saskatchewan area, as well as additional supply originating from Empress, Alberta.
Pembina and PIC will undertake a detailed technical, financial, and commercial study to confirm if the project is economically feasible and aligns with each companies’ investment criteria. The study is expected to take about six months, followed by Pembina and PIC approval to proceed to front-end engineering design. The final investment decision is expected to be made by the middle of 2017. Subject to regulatory, environmental, and Pembina board of directors’ approval, the project is forecast to be in service by 2020.
“This project potentially builds on both Pembina’s position as the largest supplier to Alberta’s existing petrochemical industry, as well as being one of Canada’s leading energy infrastructure companies,” said Mick Dilger, Pembina president and CEO. “Developing this project represents another natural extension of our natural gas liquids value chain and is a logical step for additional seamless integration with our existing asset base.” “PIC is very excited to be evaluating the feasibility of the project,” added Mohammed Abdullatif Al-Farhoud, CEO of PIC. “Alberta represents a very attractive market to develop large-scale petrochemical infrastructure, as it is supported by long-term feedstock security, a supportive local government, and complements the existing asset base of PIC and related companies operating in Alberta.
Over the past decade, about 85% of Alberta’s propane production has been exported across North America. Developing Alberta-based infrastructure will increase local propane demand benefitting oil and gas producers, as well as the province, by increasing regional economic activity and the tax base. The project could consume 35,000 bbld of propane and produce up to 800,000 metric tonnes of polypropylene a year.
Polypropylene would be transported in a pellet form to markets across North America and internationally. Polypropylene is one of the world’s most commonly used polymers. Traditional uses include automobile plastics, medical supplies, home appliances, transparent containers, and numerous other applications. With access to the largest supply of propane in the Western Canadian Sedimentary Basin, Pembina is poised to facilitate development of the project. Once construction of the company’s third fractionator is completed, Pembina will have more than 200,000 bbld of capacity and will control about 60,000 bbld of propane supply in the Fort Saskatchewan area, as well as additional supply originating from Empress, Alberta.
Pembina and PIC will undertake a detailed technical, financial, and commercial study to confirm if the project is economically feasible and aligns with each companies’ investment criteria. The study is expected to take about six months, followed by Pembina and PIC approval to proceed to front-end engineering design. The final investment decision is expected to be made by the middle of 2017. Subject to regulatory, environmental, and Pembina board of directors’ approval, the project is forecast to be in service by 2020.
“This project potentially builds on both Pembina’s position as the largest supplier to Alberta’s existing petrochemical industry, as well as being one of Canada’s leading energy infrastructure companies,” said Mick Dilger, Pembina president and CEO. “Developing this project represents another natural extension of our natural gas liquids value chain and is a logical step for additional seamless integration with our existing asset base.” “PIC is very excited to be evaluating the feasibility of the project,” added Mohammed Abdullatif Al-Farhoud, CEO of PIC. “Alberta represents a very attractive market to develop large-scale petrochemical infrastructure, as it is supported by long-term feedstock security, a supportive local government, and complements the existing asset base of PIC and related companies operating in Alberta.
