Monday, August, 19, 2019 06:25:43
  • Kuwait-based Petrochemical Industries Company is the joint venture partner of Pembina.

 

  • The proposed integrated propane dehydrogenation plant and polypropylene (PDH/PP) facility is located toward the northeast of Edmonton in Sturgeon County.

The Calgary-based transportation and midstream service provider Pembina Pipeline Corporation has reportedly decided to go ahead with its proposed polypropylene facility joint venture with Kuwait’s Petrochemical Industries Company.

Valued at about USD 4.5 billion, the Alberta-based project would convert propane into plastic and is likely to deliver higher compensation to oil and gas manufacturers across the land-locked western Canada.

Reportedly, the proposed integrated propane dehydrogenation plant and polypropylene (PDH/PP) facility is located toward the northeast of Edmonton in Sturgeon County. According to a press release issued by the Pembina Pipeline Corporation, the company was granted USD 300 million in royalty credits by the Alberta government in 2016 as an incentive for the project.

Sources familiar with the development claim the credits enable producers to cut down their royalty payments to the government and cannot be claimed by the petrochemical facilities themselves.

The Chief Executive Officer of Pembina Pipeline Corporation, Mick Dilger was reportedly quoted saying that the sanctioning of the PDH/PP plant is the biggest step taken by the company till date in materializing its strategy to secure worldwide market prices for consumers and has offered another platform for future growth.

The plastic pellets manufactured at the facility would be sent by rail and shipping containers to producers across the globe to be turned into recyclable products utilized in home electronic appliances, food packaging, medical devices, and automobiles.

The Chief Executive Officer of Petrochemical Industries Company, Mohammed Abdullatif Al-Farhoud reportedly commented that the facility is perfectly aligned with the firm’s continued quest of globally diverse and sustainable growth.

As per reliable sources, the facility is expected to commence operations in mid-2023.