Pembina, PIC jv advances towards planned PDH/PP project in Sturgeon County

Canada Kuwait Petrochemical Corp (CKPC), the 50:50 joint venture (jv) between Canadian petroleum and natural gas pipeline operator, Pembina Pipeline Corporation,  and Kuwait’s Petrochemical Industries Company (PIC), will be pushing through the proposed integrated propylene and polypropylene production (PDH/PP) facility in Sturgeon County, Alberta. The CKPC will also proceed with activities for front end engineering design (FEED) for the project.  Deliverables of FEED include a refined capital cost estimate, a project execution plan, regulatory applications, an updated construction schedule and projected in-service date, among numerous other items. The anticipated cost of FEED is expected to represent approximately 2% percent to 2.5% of the Project’s current cost estimate. FEED activities are expected to be completed by late 2018, followed by a final investment decision (FID) from each partner.

Stuart Taylor, Pembina’s Senior Vice President, NGL & Natural Gas Facilities commented that this project represents a material extension of the company’s natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons.

The proposed PDH/PP facility is expected to consume 22,000 barrels per day of Alberta-produced propane, which is expected to be sourced from Pembina’s Redwater Fractionation Complex, as well as other regional facilities. The project, which has a preliminary capital cost estimate of US$3.8 to US$4.2 billion (gross),  is anticipated to produce approximately 544,310 metric tonnes/ year of polypropylene, which would be transported to North American and global markets.