MOSCOW (MRC) -- Pembina Pipeline Corporation announced that it, along with Petrochemical Industries Company K.S.C. of Kuwait, has reached key milestones for the previously announced proposed integrated propylene and polypropylene production facility in Sturgeon County, Alberta, said Refiningandpetrochemicals.
Pembina and PIC have executed 50/50 JV agreements that includes binding commercial terms in support of the Project and have formed a new entity, Canada Kuwait Petrochemical Corporation. Additionally, Pembina is pleased to announce that CKPC will proceed with activities for front end engineering design for the Project.
"The encouraging results of the recently completed feasibility study, the previously announced award of $300 million in royalty credits from the Alberta Government's Petrochemicals Diversification Program, and a Joint Venture with our world class partner, PIC, gives Pembina the confidence to further advance the Project," said Stuart Taylor, Pembina's Senior Vice President, NGL & Natural Gas Facilities. "This Project represents a material extension of our natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons."
The anticipated cost of FEED is expected to represent approximately 2.0% 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 from each partner.
The proposed PDH/PP Facility is expected to consume 22,000 bpd of Alberta-produced propane, which is expected to be sourced from Pembina's Redwater Fractionation Complex, as well as other regional facilities. The Project is anticipated to produce in excess of 1.2 B pounds per year of polypropylene which would be transported to North American and global markets. Subject to required approvals and a positive FID, the JV expects to construct the PDH/PP Facility in close proximity to RFS in Sturgeon County, part of Alberta's Industrial Heartland.