MOSCOW (MRC) -- Canadian midstream energy and petrochemicals company Pembina Pipeline is cutting capital spending by between Canadian dollar (CD) 900m to 1.1bn (USD625-764m) as it reacts to the coronavirus (Covid-19) pandemic and the recent decline in global energy prices, reported Chemweek.
A number of projects will be deferred, including Pembina’s investment in the Canada Kuwait Petrochemical Corp (CKPC) petrochemicals joint venture - which involves building an integrated propane dehydrogenation and polypropylene (PDH/PP) complex in Alberta province.
Officials previously indicated an H2 2023 in-service timeline for the complex.
The company will also defer a number of pipeline projects, a co-generations power facility, and the expansion of a liquefied petroleum gas (LPG) export terminal in British Columbia.
Pembina expects its revised 2020 capital budget to be CD1.2-CD1.4bn - down from previously planned CD2.3bn.
As MRC informed before, a new multibillion-dollar petrochemical facility being developed in Alberta will be built by a 50/50 partnership between Fluor Canada Ltd. and Kiewit Construction Services ULC. The partnership is called Canada Kuwait Petrochemical Corporation (CKPC). The deal with Fluor and Kiewit covers construction of the site’s propane dehydrogenation facility. CKPC said in January 2020 the contractor selection process for the polypropylene upgrading facility is still ongoing.
Calgary-based Pembina Pipeline Corp. and Petrochemical Industries Co. K.S.C. of Kuwait have been planning the facility within the Alberta Industrial Heartland development area northeast of Edmonton for nearly four years. Pembina has a 50 per cent interest in the joint venture with Petrochemical Industries, which will own the propane dehydrogenation and polypropylene upgrading plants.
Propylene is the main feedstock for the production of polypropylene (PP).
According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.