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Pembina and Kuwait Petroleum evaluating Alberta propane-to-PP complex

Houston, April 11, 2016 (PCW) -- Pembina Pipeline Corporation announced that it is evaluating a world-scale propane dehydrogenation (PDH) and PP facility in Albert, in collaboration with Petrochemical Industries Company (PIC), a subsidiary of Kuwait Petroleum Corporation.

The proposed project would provide an outlet for the region's propane, consuming about 35,000 barrels/day to produce as much as 800,000 mt/year PP.

Pembina is building a third fractionator in the Fort Saskatchewan, AB area, which will bring its total fractionation capacity to over 200,000 barrels/day, including 60,000 barrels/day propane. The company has additional propane supply coming from Empress, AB.

The evaluation of the PDH/PP project will take about six months. If Pembina and PIC approve, front end engineering design (FEED) would begin in 4Q 2016, with a final investment decision expected by mid-2017. Production could begin as early as 2020.

PIC operates a 150,000 mt/year PP plant in Kuwait. -- David Barry

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