CANADA: Williams increasing PP production in Alberta with Canada’s first PDH unit

Williams' PDH facility in Canada will have the capability to initially  produce up to approximately 1.1 billion pounds (500 kilotonnes) annually  of polymer-grade propylene, with the opportunity to double capacity with  a future expansion. The company estimates capital expenditures of up to  C$900 million to be funded with expected cash flow from its Canadian  operation and international cash on hand. Pending appropriate permitting  approvals, the PDH facility is scheduled to go into service in the  second quarter of 2016.

Williams has selected Honeywell's UOP as the vendor to provide the UOP  Oleflex™ process technology for the dehydrogenation process. The  technology is environmentally superior because it uses a platinum-based  catalyst system, as well as less energy and water than competing PDH  technologies. Williams' PDH facility will be sited in close proximity to  its existing Redwater fractionation plant near Edmonton, Alberta.

Williams plans to primarily use propane recovered from its expanding oil  sands offgas processing operations along with local propane purchases as  feedstock for the new PDH facility. It will convert the propane into  higher-value propylene that will be transported to the U.S. Gulf Coast  and sold to petrochemical producers. Plans are to sell the associated  hydrogen byproduct in the Alberta market. Williams is also exploring  development of new propylene markets for its production in Alberta.

The Redwater complex includes fractionation, storage and distribution  facilities and is currently being expanded to produce approximately 5  million barrels of propane and 280 million pounds of polymer-grade  propylene annually from offgas, in addition to other NGLs and olefins.  The addition of the new PDH facility will vastly increase Williams'  production of polymer-grade propylene. The company expects the new  facility to produce one of the lowest-cost, PDH-sourced propylene  feedstocks in North America.

"We're thrilled to be moving full-speed ahead on Canada's first and only  PDH facility. The project fits strategically within Williams' operations  in Alberta, leverages our expertise in propylene and adds further value  to a byproduct of oil sands upgraders," said David Chappell, president  of Williams Energy Canada. "Once operational, this new propane  dehydrogenation facility will expand market opportunities for Canada, feed the demands of North America's growing petrochemical industry and  allow for the creation of a new value chain in Alberta."

"We are extremely excited about this project on many levels," said Alan  Armstrong, president and chief executive officer of Williams. "We expect  the PDH facility to deliver a very attractive return on investment as  well as provide a long-term natural hedge of the propane volumes we  control in our Canadian offgas processing business. Our planned PDH  facility will enable Williams to capture the full value between natural  gas and polymer-grade propylene rather than just the value between  natural gas and propane."

Source: Williams website, 18 Mar 2013

(Syed Rashid Ali, Karachi, Pakistan)