Pembina Pipeline Corporation (Pembina) along with Petrochemical Industries Company K.S.C. (PIC) of Kuwait, is pleased to announce that Canada Kuwait Petrochemical Corporation (CKPC) has executed a lump-sum engineering, procurement and construction (EPC) contract related to the construction of the propane dehydrogenation (PDH) facility within its integrated PDH and polypropylene (PP) upgrading facility (PDH/PP Facility). With this contract, CKPC has fixed approximately 60% of the cost of the PDH/PP Facility thus far. In conjunction with the execution of the lump sum contract, the Company also announces an update to its share of the capital cost for the PDH/PP Facility and project timing.
Following the execution of the lump sum EPC contract and with cost certainty for approximately 60% of the project cost, Pembina has revised its proportionate share of the capital cost of the PDH/PP Facility, including the 100% directly-owned supporting facilities, to USD 2.7bn. The increase over the prior estimate is associated with the PDH facility, which is now fixed under the lump sum EPC contract. The revised capital cost estimate will not affect Pembina’s previously announced 2020 capital budget. CKPC now expects the PDH/PP Facility to be placed into commercial service in the second half of 2023.
CKPC has selected Heartland Canada Partners, a 50/50 partnership between Fluor Canada Ltd. (Fluor) and Kiewit Construction Services ULC (Kiewit) as the EPC contractor for the PDH facility. Both companies bring extensive EPC track records for safety, quality, and delivery in the petrochemical space in Canada. The contractor selection process for the PP facility is ongoing.