Pembina and Kuwait's PIC Mulling new propane upgrading facility in Alberta
Pembina Pipeline and Kuwait's Petrochemical Industries Company (PIC) are evaluating the construction of a new propane upgrading facility in Alberta. The plant would convert 35,000 bbl/day of propane into 800,000 metric tonnes/year of polypropylene.
About 88% of Canada's propane is produced in Alberta during the fractionation of the natural gas liquids. Alberta produces an estimated 190,000 bbl/day of propane; only 20,000 bbl/day is used in the province and the remainder exported, selling for just pennies a litre. Spot prices actually went negative in the summer of 2015 due to a huge oversupply in the province.
The feasibility study is expected to last 6 months. If approved, the new project could be up and running by 2020. The Alberta government is offering up to $500 million in royalty offset credits for new petrochemical plants.