Canada/Kuwait JV considering building PP plant in Alberta

A proposed propylene and polypropylene (PP) production complex to be built in Alberta’s Industrial Heartland is a step closer to reality.

Calgary-based Pembina Pipeline Corporation and  Petrochemical Industries Co. KSC of Kuwait have formed Canada Kuwait Petrochemical Corporation and will proceed with front-end engineering design for a proposed 1.2 billion lbs-per-year integrated propylene and polypropylene production facility in Sturgeon County, Alta.

The facility would take 22,000 barrels per day of propane produced in Western Canada and convert it into PP, used to produce such plastic products as automobile parts or appliances.

“The encouraging results of the recently completed feasibility study … give Pembina the confidence to further advance the project,” Pembina’s senior vice president Stuart Taylor said in a statement.

As part of the agreement, the partners will refine the capital costs, now estimated at $3.8 billion to $4.2 billion, and develop an updated project schedule.

Analysis will be completed by late next year, slightly behind initial projections, and both partners will then make a final investment decision.

“It’s encouraging to see another milestone along the way on a project that will help diversify the type of energy products we produce here in Alberta,” said Margaret McCuaig-Boyd, Alberta’s Minister of Energy. “Our government is committed to creating good jobs in the industry through investments in world-class petrochemical facilities like this one.”

Founded over 60 years ago, Pembina owns and operates an integrated system of pipelines that transport various products derived from natural gas and hydrocarbon liquids produced primarily in Western Canada.