Pembina gives go ahead for $4.5B Alberta petrochemical plant

Image: Pembina Pipeline

Pembina Pipeline Corporation says it has made a positive final investment decision on a $4.5-billion petrochemical facility in Alberta's Industrial Heartland.

The integrated propane dehydrogenation plant and polypropylene facility is a joint venture with Petrochemical Industries Co. of Kuwait and has up to $300 million of royalty credits from the Alberta government through its Petrochemicals Diversification Program.

The facility will be located adjacent to Pembina's Redwater fractionation complex, and will process about 23,000 barrels per day of local propane into 550,000 metric tonnes of polypropylene per year.

The polymer is fully recyclable and can be used in a wide range of finished products including automobiles, medical devices, food packaging and home electronic appliances, Pembina said.

The PDH/PP Facility is expected to be in-service in mid-2023, subject to environmental and regulatory approvals.

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