Pembina Pipeline Corporation (Pembina) along with Petrochemical Industries Company K.S.C. (PIC) of Kuwait, is pleased to announce a positive final investment decision to construct a 550,000 tonne per annum integrated propane dehydrogenation (PDH) plant and polypropylene (PP) upgrading facility through their equally-owned joint venture entity, Canada Kuwait Petrochemical Corporation (CKPC).
CKPC brings together two strategically aligned organizations, with complementary strengths, united in developing and operating a world-scale Alberta PDH/PP Facility. PIC brings comprehensive PDH and PP project experience, along with diversified global petrochemical marketing expertise. Pembina will manage long-term propane supply and provide Alberta-specific operating and project execution experience, feedstock connectivity and strong producer relationships.
The PDH/PP Facility will be strategically located in Alberta’s Industrial Heartland, adjacent to Pembina’s Redwater fractionation complex (RFS) and will consume approximately 23,000 barrels per day of local propane from RFS and other regional fractionation facilities. Ideally located in the Western Canadian Sedimentary Basin, the facility will have long-term access to an abundant supply of propane feedstock, with a structural cost advantage when compared to other North American facilities.
The PDH/PP Facility is expected to be in-service in mid-2023, subject to environmental and regulatory approvals, and is expected to generate annual run-rate Adjusted EBITDA of USD 275 to USD 350M, net to Pembina.