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$900 million facility to be first of its kind in Canada

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by Journal Of Commerce

The Canadian subsidiary of Williams is planning the construction of a propane dehydrogenation (PDH) facility near its existing complex in Redwater, near Edmonton, which will be the first facility of its kind in Canada.

The Canadian subsidiary of Williams is planning the construction of a propane dehydrogenation (PDH) facility near its existing complex in Redwater, near Edmonton, which will be the first facility of its kind in Canada.

“We’re thrilled to be moving full-speed ahead on Canada’s first and only PDH facility,” said David Chappell, president of Williams Energy Canada. “The project fits strategically within Williams’ operations in Alberta, leverages our expertise in propylene and adds further value to a byproduct of oilsands upgraders.”

This new $900 million facility, which will be in close proximity to its existing Redwater fractionation plant, will allow it to increase production of polymer-grade propylene from its Canadian operations.

Williams is the only company in Canada to produce polymer-grade propylene, which is used in plastics manufacturing.

The company plans to use propane recovered from its expanding oilsands offgas processing operations, as well as local propane purchases.

It will convert the propane into higher-value propylene that will be transported to the U.S. Gulf Coast and sold to petrochemical producers. There are also plans to sell the associated hydrogen byproduct in the Alberta market.

The facility will have the capacity to initially produce up to about 1.1 billion pounds (500 kilotonnes) annually of polymer-grade propylene, with the opportunity to double capacity with a future expansion. Pending permitting approvals, construction is scheduled for completion in the second quarter of 2016.

When producers convert the Canadian oilsands into usable oil, the process produces an offgas byproduct that includes a mixture of natural gas, natural gas liquids (NGLs) and olefins.

Williams began extracting the mixture from the offgas at its Fort McMurray, Alberta, liquids extraction plant.

After it extracts the offgas mixture, Williams returns the clean-burning natural gas to the third-party oilsands producer for its operations.

It then transports the remaining NGL/olefins mixture, via pipeline, to its Redwater fractionation facility for further separation. Williams is the world’s only processor of oilsands upgrader offgas and operates the only olefins/NGL fractionators in western Canada.

JOC NEWS SERVICE

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