Pembina, Kuwait’s PIC form JV
Canada
CALGARY, May 16, 2017 – Canada’s Pembina Pipeline Corporation and Kuwait’s Petrochemical Industries Company have formed a joint venture to build an integrated propylene and polypropylene production facility, Pembina announced on Monday.
The two companies had launched a six-month feasibility study for the project in April of last year.
“This Project represents a material extension of our natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons,” said in a statement Pembina’s Senior Vice President for NGL & Natural Gas Facilities Stuart Taylor, adding that the project had received USD 300 million in royalty credits from the Alberta Government’s Petrochemicals Diversification Program.
The 50/50 JV, Canada Kuwait Petrochemical Corporation, will begin FEED works for the plant, to be located in Canada near Edmonton, Alberta.
The facility will be fed with 22,000 boepd of locally-produced propane and is expected to have an output of around 544,000 tpy of polypropylene.
The project’s capital cost is estimated at USD 3.8 billion-4.2 billion.
A subsidiary of the Kuwait Petroleum Corporation, Petrochemical Industries Company manufactures and markets petrochemicals in Kuwait and abroad.
For Pembina, meanwhile, the news came days after it announced it would be acquiring competitor Veresen for some USD 7.1 billion.
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