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Alberta offers $500 million incentives for two PDH projects
HOUSTON, December 5, 2016 (PCW) -- The government of Alberta province in western Canada today announced incentives totaling $500 million for two proposed PDH projects.
The first project, a joint venture of Pembina Pipeline and Petrochemical Industries Company (PIC), has been approved for up to $300 million in royalty credits for an integrated propylene-to-PP facility. The facility would process about 22,000 b/d of propane into PP.
The expected cost of that facility is around $4 billion. Should Pembina and PIC decide to proceed with the project, construction would start in 2019, with startup by 2021.
The second project, by Inter Pipeline, has been approved for up to $200 million in royalty credits. Similar to the Pembina/PIC project, Inter Pipeline's proposed facility, at a cost of about $1.8 billion, would process 22,000 b/d of propane into propylene. The company is exploring building a derivatives plant adjacent to the PDH unit.
Final investment decisions for both projects are expected in mid-2017.
Under Alberta's Petrochemicals Diversification program, royalty credits are only provided after construction is completed and the facility is operational. -- David Barry