Williams Begins Operations at 2nd Liquids Extraction Plant

Williams is the sole company extracting and fractionating NGL/olefin mixes from oil sands upgrader offgas. The company’s first plant of this kind serves the upgrader of a third-party oil sands producer. The two plants recover ethane, propane, propylene, and other liquids from the upgraders’ offgas streams. Williams transports, fractionates, and markets the products. The offgas processing that Williams pioneered significantly reduces emissions at its customers’ oil sands production facilities. Williams captures and processes a rich NGL/olefins mixture that would normally be burned as fuel by the oil sands producer. The producer instead burns methane that Williams provides in exchange for the NGL/olefins mixture.

“This new offgas plant at the upgrader is helping the environment and creating value from what was previously a low-value oil sands resource,” said David Chappell, president, Williams Energy Canada. “It adds to our world-class, long-life complex of assets with a highly sustainable, competitive advantage in a key North American energy hub.” The plant increases by 60% the amount of NGLs produced by Williams in Canada to a total of about 40,000 bbld. At peak construction the plant employed 1200 workers and more than a dozen permanent staff operate the facility.

Alberta’s minister of environment and parks, Shannon Phillips, who is also responsible for the province’s climate change office, praised Williams for improving both the environment and the economy. “We applaud Williams Energy Canada for its efforts to reduce greenhouse gas emissions, add value to our resources, and create good jobs here in Alberta,” he said. “The startup of this plant is a testament to the innovation of Alberta’s energy industry. Fort McKay First Nation, whose traditional land is near the new facility, added, “The Fort McKay First Nation appreciates that the Williams facility is expected to have a positive impact on the local air shed by reducing carbon and sulfur dioxide emissions. This will mean a healthier future for our people and for the environment. We are pleased to support companies that are putting the environment first and are respectful of our traditional lands.”

Following extraction at the upgrader, the NGL/olefins mixture is transported on Williams’ recently extended Boreal Pipeline to the company’s expanded Redwater Olefinic Fractionator, the only olefin/paraffin fractionator in Canada. Most of the propane is expected to feed Williams’ planned propane dehydrogenation (PDH) facility near Edmonton for the manufacture of polymer-grade propylene. A private equity global petrochemical group has executed a long-term contract with Williams for 450 kilotons per annum (KTA) of propylene for polypropylene production. “This developing complex will greatly reduce Canada’s current dependence on polypropylene imports while spurring domestic manufacturing and strengthening the region’s economy,” noted Chappell.

Williams’ two offgas processing plants in Canada together will eventually reduce annual carbon dioxide emissions by more than 500,000 tonnes and annual sulfur dioxide emissions by 5500 tonnes. The carbon dioxide emissions reduction is equal to taking 105,000 cars off the road every year and equal to the total yearly energy needs of 45,000 homes. To achieve the same reduction through sequestration, 12.8 million seedlings would need to be grown for 10 years. If offgas from all oil sands upgraders in Alberta were captured and processed, carbon dioxide emissions would be reduced by 1 million metric tonnes each year, Williams comments.