Pembina, PIC evaluate world-scale polypropylene facility in Alberta

Pembina, PIC to evaluate world-scale polypropylene facility in Alberta

5:54 AM, 13th April 2016
Pembina, PIC to evaluate world-scale polypropylene facility in Alberta

CALGARY, CANADA: Pembina Pipeline Corporation (Pembina) announced the joint feasibility study with the Petrochemical Industries Company KSC (PIC), a subsidiary of the Kuwait Petroleum Corporation, for the evaluation of a world-scale combined propane dehydrogenation (PDH) and polypropylene upgrading facility in Alberta.

The project could consume approximately 35,000 barrels per day (bpd) of propane and produce up to 800,000 metric tonne per year of polypropylene. The final investment decision is expected to be made by the middle of 2017 and the project is expected to be in service by 2020.

Pembina and PIC will undertake a detailed technical, financial and commercial study to confirm if the development of the project is economically feasible and aligns with each party’s respective investment criteria. This study is expected to take approximately six months, followed by Pembina and PIC approval to proceed to front end engineering design (FEED).

This project represents an opportunity to develop crucial new market demand for propane in Alberta. Over the past decade, approximately 85 percent of Alberta’s propane production has been exported across North America. The new infrastructure will increase local propane demand benefitting Alberta’s oil and gas producers.

The 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 as well as numerous other applications.

“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, president and CEO, Pembina.

“PIC is excited to be evaluating the feasibility of the project. This opportunity supports PIC’s continued efforts in expanding its business portfolio globally. PIC is always in search for exceptional investment and partnership opportunities, especially in the promising regions with advantageous feedstock and market,” said Mohammed Abdullatif Al-Farhoud, PIC’s CEO.

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