« BackNews: Pembina Announces Plans For New PDH/PP Plant In Alberta
Pembina Announces Plans For New PDH/PP Plant In Alberta
Pembina Pipeline Corporation has revealed it will join together with Petrochemical Industries Company KSC of Kuwait to build a new propane dehydrogenation (PDH) plant and polypropylene (PP) upgrading facility in Alberta, Western Canada.
The new PDH/PP site, created through their co-owned entity Canada Kuwait Petrochemical Corporation, will be situated next to Pembina’s Redwater fractionation complex (RFS).
It is anticipated the plant will consume 23,000 barrels of local propane from RFS a day, while having a nameplate capacity of 550,000 metric tonnes of PP per annum. This includes impact and random copolymers, which are used in a wide range of products – from medical equipment and electronic devices to food packaging and the automobile industry. They will be transported throughout North America and even worldwide.
Mick Dilger, president and chief executive officer of Pembina, said: “Sanctioning of the PHD/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.”
He went on to say the project has taken many years to come to fruition, with the location “well positioned to capitalise on Alberta’s abundant supply of propane”.
The site is expected to be functional by the middle of 2023, and will generate an annual run-rate Adjusted EBITDA of between CAD $275 million (£161 million) and $350 million to Pembina.
Just last week, Pembina hit the headlines for approving phase VIII of the Peace Pipeline Expansion, which will increase segregation of liquids for ethane-plus, propane-plus, crude and condensate across four pipelines in Canada. It will also help meet customer demand in Montney by boosting delivery capacity of 1.3 million barrels a day across Peace and Northern Pipelines.
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