Alberta being evaluated as site of new PP plant

Pipeline provider Pembina Pipeline Corporation is studying whether to build a large-scale petrochemical processing plant in Alberta.

The Calgary-based company has announced a partnership with a subsidiary of the Kuwait Petroleum Corporation to study the feasibility of the plant.

The proposed facility would take 35,000 barrels a day of propane from western Canada and process it into 800,000 tonnes of plastic pellets. The pellets, in the form of PP, would be sold to North American and international markets to be used in a range of products including auto parts, medical supplies, and home appliances.

In a statement, Pembina said it will take about six months to complete the study to assess the potential of the plant, with a final investment decision likely by mid-2017. If approved, the plant could be completed by 2020.

“This project represents an opportunity to develop crucial new market demand for propane in the Province of Alberta,” the statement continued. “Over the past decade, approximately 85 percent of Alberta’s propane production has been exported across North America. Developing Alberta-based, value-add infrastructure will increase local propane demand benefitting Alberta’s oil and gas producers, as well as the Province, by increasing regional economic activity and tax base.”

The partnership and feasibility study come on the heels of the Alberta government’s announcement, in February, of a program offering $500 million in royalty credits to encourage more value-added petrochemical facilities in the province.