Canada´s Pembina Pipeline Corp. increased by C$200 million its share of the cost to build a propane dehydrogenator (PDH) and polypropylene (PP) plant complex and extended the time period estimated for the project’s completion.
Advances in InterPipeline's PHD/PP project as of third quarter of 2019. InterPipeline, like Pembina, is a Canadian pipeline company venturing into plastic resin production.
The revised cost and timeline came as the company negotiated its engineering, procurement and construction for the PDH part of the project, Pembina said on Jan. 7 as it announced a contract with Fluor.
“With this contract, CKPC has fixed approximately 60% of the cost of the PDH/PP Facility thus far,” the Calgary-based Pembina said.
CKPC stands for Canada Kuwait Petrochemical Corp., an equal joint venture of Pembina with Kuwait’s Petrochemical Industries Company building the propane dehydrogenater and polypropylene (PP) complex near Edmonton, Alberta.
Pembina revised its share of the capital cost of the PDH/PP facility to C$2.7 billion “following execution of the lump-sum EPC contract and with certainty for 60% of the project cost," it said.
“CKPC now expects the PDH/PP facility to be placed into commercial service in the second half of 2023,” it added.
Pembina initially estimated its proportional share of the capital cost at C$2.5 billion and a mid-2023 startup.
The planned PDH/PP facility will have capacity of 550,000 tonnes of PP per year, including impact and random copolymers, the company said in February 2019 as it announced its final investment decision.
There isn’t a decision yet in the ongoing selection process for a similar construction contract for the polypropylene plant, the company said.