MOSCOW (MRC) -- Williams has announced that it is proceeding to the next phase of development with its planned propane dehydrogenation (PDH) facility located near Edmonton, Alberta. The plant will have a capacity of 525 KTA of polymer grade propylene production and will use low-cost, locally sourced propane as its feedstock, said the producer on its site.
The next phase includes primarily detail engineering and certain commitments to long-lead equipment. Williams expects a final investment decision by the second half of 2016. Planned startup of the PDH facility and the polypropylene plant is at the end of 2019.
Concurrently, Williams has signed an agreement with privately held North American Polypropylene (NAPP). NAPP is an affiliate of Goradia Capital, a private equity global developer of projects and marketer of petrochemical products.
In the agreement, NAPP will purchase 450 KTA of propylene on a 25-year term firm fee for service basis for the production of homopolymer polypropylene, a recyclable plastic used widely in many consumer and industrial products. NAPP’s project will be based on UNIPOL polypropylene technology and will be co-located on the same site as Williams’ PDH unit.
"Together these projects will add value to Alberta’s natural resources creating jobs and diversification of the Alberta economy," said David Chappell, president, Williams Energy Canada. "Once operational, the complex will be globally competitive and well positioned to access North American and world markets. Longer term, this platform will provide the foundation for a larger petrochemical complex, including a co-located PDH II facility."
As MRC informed earlier, in February 2015, Williams Cos. Inc. closed on what one energy industry group called "deal of the year" in 2014 by completing its merger of natural gas pipeline entities Williams Partners LP and Access Midstream Partners LP.
Williams, headquartered in Tulsa, Okla., is one of the leading energy infrastructure companies in North America. It owns controlling interests in both Williams Partners L.P. and Access Midstream Partners, L.P. through its ownership of 100% of the general partner of each partnership. Additionally, Williams owns approximately 66% and 50% of the limited partner units of Williams Partners L.P. and Access Midstream Partners, L.P., respectively. On June 15, 2014 Williams proposed the merger of Williams Partners and Access Midstream Partners. The proposed merger has been approved by boards of each partnership and was closed in early 2015.
MRC