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Williams starts up second offgas processing plant; NGLs to eventually supply PDH plant
HOUSTON, March 23, 2016 (PCW) -- Williams on Wednesday said it had started up its second offgas processing plant near Fort MacMurray, Alberta.
Both plants recover recover ethane, propane, propylene and other liquids from oil sands upgraders’ offgas streams. Williams then transports, fractionates and markets the products.
This second plant puts Williams NGL processing capacity in Canada to some 40,000 b/d, an increase of some 60%.
Following extraction at the plant, the NGL/olefins mixture will be transported by Williams’ Boreal Pipeline to the company’s expanded Redwater Olefinic Fractionator, which is the only olefin/paraffin fractionator in Canada. Most of the propane is expected to feed Williams’ planned propane dehydrogenation (PDH) facility near Edmonton for the manufacturing of polymer-grade propylene.
Williams’ planned 1.2 billion lb/yr PDH plant is expected to come online at the end of 2019. A final investment decision is expected in the second half of this year. Williams has signed an agreement with privately-held North American Polypropylene, which is an affiliate of private equity firm Goradia Capital, which will purchase 990,000 million lb/yr of PGP on a 25-year term firm fee for service basis for the production of homopolymer polypropylene. NAPP’s PP project will be located on the same site as Williams’ PDH unit. –- Samantha Hartke