The Williams Companies, Inc. (co.williams.com; Tulsa, Okla.;) announced that it is proceeding to the next phase of development with its planned propane-dehydrogenation (PDH) facility located near Edmonton, Alberta, Canada. The plant will have a capacity of 525,000 metric tons per year (m.t./yr) of polymer-grade propylene production and will use low-cost, locally sourced propane as its feedstock.
Concurrently, Williams has signed an agreement with privately held North American Polypropylene (NAPP). NAPP is an affiliate of Goradia Capital, a private equity global developer of projects and marketer of petrochemical products.
In the agreement, NAPP will purchase 450,000 m.t./yr of propylene on a 25-year term firm fee for service basis for the production of homopolymer polypropylene, a recyclable plastic used widely in many consumer and industrial products. NAPP’s project will be based on Unipol polypropylene technology and will be co-located on the same site as Williams’ PDH unit.
The next phase includes primarily detail engineering and certain commitments to long-lead equipment. Williams expects a final investment decision by the second half of 2016. Planned startup of the PDH facility and the polypropylene plant is at the end of 2019.
“Together these projects will add value to Alberta’s natural resources creating jobs and diversification of the Alberta economy,” said David Chappell, president, Williams Energy Canada. “Once operational, the complex will be globally competitive and well positioned to access North American and world markets. Longer term, this platform will provide the foundation for a larger petrochemical complex, including a co-located PDH II facility.”