MOSCOW (MRC) -- The Canadian oil-producing province of Alberta will offer USD377.84 million in royalty credits to Pembina Pipeline Corp and Inter Pipeline Ltd for their petrochemical projects, the government said on Monday as it seeks to diversify its ailing economy, reported Reuters.
The provincial government said the companies were the approved applicants of its Petrochemicals Diversification Program, which supports construction of facilities that use propane or methane, components of natural gas, as feedstock to produce materials for products including plastics, detergents and textiles.
Pembina's project is a joint venture with Kuwait's Petrochemical Industries Company (PIC) and has been approved to receive up to CD300 million in royalty credits to build a propylene-polypropylene facility, the government said in a statement.
The project by Inter Pipeline has been approved to receive up to USD200 million in royalty credits, according to the government.
As MRC informed before, in April 2016, PICt and Pembina Pipeline announced that they were evaluating the feasibility of a combined, world-scale propane dehydrogenation (PDH) and polypropylene (PP) production facility in Alberta, Canada. Pembina and PIC then expected to complete the study in six months. If the project continues into front-end engineering and design (FEED), the partners would make a final investment decision by mid-2017, with startup expected by 2020.
The Project could consume approximately 35,000 barrels per day of propane and produce up to 800,000 metric tonnes per year of PP. The polypropylene would be transported in a pellet form to markets across North America and internationally.
Polypropylene is one of the world's most commonly used polymers, traditional uses include automobile plastics, medical supplies, home appliances, transparent containers as well as numerous other applications.
Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns and operates an integrated system of pipelines that transport various products derived from natural gas and hydrocarbon liquids produced in Western Canada and North Dakota. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business.
PIC is a subsidiary of Kuwait Petroleum Corporation and a producer of ammonia, urea fertilizer and polypropylene in Kuwait. In addition PIC is a joint venture partner with others in Kuwait involved in the production of Ethylene, Polyethylene , Ethylene Glycol , Styrene Monomer, Para-xylene, Benzene. PIC is a joint venture partner with others outside of Kuwait involved in the production of Ammonia, Methanol, Ethylene Glycol, and Polyethylene Terephthalate .