Thursday, May 4, 2017
Calgary, Alberta (May 4, 2017) — Pembina Pipeline Corp. (Calgary) has signed a non-binding letter of intent with Prince Rupert Legacy Inc., a wholly owned subsidiary of the city of Prince Rupert, for the development of a west coast propane terminal on Watson Island, lands owned by Prince Rupert Legacy. Under the agreement, Pembina has commenced site assessment and engagement with stakeholders, including First Nations communities.
Pembina comments that initial assessments of the site indicate it is ideal for the development of an export terminal with a capacity of about 20,000 bbld. The capital cost for the project ranges between C$125 million and C$175 million. Pembina expects a project timeline of two years from the final investment decision. The project is subject to completion of design and engineering requirements, Pembina entering into definitive agreements, the receipt of necessary environmental and regulatory permits, and the approval of the company’s board of directors.
“Watson Island has promising potential as an LPG export terminal location,” said Stuart Taylor, senior vice president, NGL and natural gas facilities. “In light of our plans to develop a world-scale polypropylene production facility, the smaller export facility we are contemplating for Watson Island—utilizing smaller ships and ensuring very competitive per-unit export facility costs—makes good sense for Pembina.”
Located about 15 kilometers south of Prince Rupert, B.C., the Watson Island site has positive attributes which make it an attractive candidate for Pembina’s west coast terminal. The location features a sheltered berth, existing dock space adequate for activities associated with LPG exports, and established rail connections between Redwater, Alta. and Watson Island, while also offering efficient shipping routes to Asian, North American, Central American, and South American markets. In support of the project, Pembina has secured a long-term export permit.
The company has been working toward the development of an LPG export terminal served by a national railway on the west coast of Canada for the past several years in anticipation of, and response to, the steep change in LPG production capability in the Western Canadian Sedimentary Basin. Pembina’s objective with the Watson Island project is to provide growing Canadian LPG supply with access to diverse, international markets while complementing its expanding integrated service offering for energy products derived from natural gas.
“Pembina is excited to advance its west coast propane export strategy,” Taylor added. “This project, in conjunction with Pembina’s proposed integrated propylene and polypropylene production facilities, is evidence of our efforts to find new markets for western Canadian hydrocarbons, which should benefit our producer customers, local communities, partners, and shareholders.
Pembina comments that initial assessments of the site indicate it is ideal for the development of an export terminal with a capacity of about 20,000 bbld. The capital cost for the project ranges between C$125 million and C$175 million. Pembina expects a project timeline of two years from the final investment decision. The project is subject to completion of design and engineering requirements, Pembina entering into definitive agreements, the receipt of necessary environmental and regulatory permits, and the approval of the company’s board of directors.
“Watson Island has promising potential as an LPG export terminal location,” said Stuart Taylor, senior vice president, NGL and natural gas facilities. “In light of our plans to develop a world-scale polypropylene production facility, the smaller export facility we are contemplating for Watson Island—utilizing smaller ships and ensuring very competitive per-unit export facility costs—makes good sense for Pembina.”
Located about 15 kilometers south of Prince Rupert, B.C., the Watson Island site has positive attributes which make it an attractive candidate for Pembina’s west coast terminal. The location features a sheltered berth, existing dock space adequate for activities associated with LPG exports, and established rail connections between Redwater, Alta. and Watson Island, while also offering efficient shipping routes to Asian, North American, Central American, and South American markets. In support of the project, Pembina has secured a long-term export permit.
The company has been working toward the development of an LPG export terminal served by a national railway on the west coast of Canada for the past several years in anticipation of, and response to, the steep change in LPG production capability in the Western Canadian Sedimentary Basin. Pembina’s objective with the Watson Island project is to provide growing Canadian LPG supply with access to diverse, international markets while complementing its expanding integrated service offering for energy products derived from natural gas.
“Pembina is excited to advance its west coast propane export strategy,” Taylor added. “This project, in conjunction with Pembina’s proposed integrated propylene and polypropylene production facilities, is evidence of our efforts to find new markets for western Canadian hydrocarbons, which should benefit our producer customers, local communities, partners, and shareholders.
