Canada Kuwait Petrochemical Corp. (CKPC), a joint venture between Canada’s Pembina Pipeline and Kuwait’s Petrochemical Industries Co. (PIC), has given a positive final investment decision to proceed with its proposed propane dehydrogenation (PDH) and PP project in Alberta, Canada.

The facility will be located adjacent to Pembina's Redwater fractionation complex (RFS) near Edmonton, Alberta, and will consume approximately 23,000 bbl/d of local propane from RFS and other regional fractionation facilities. Pembina said the complex will have long-term access to an abundant supply of propane feedstock, giving it a structural cost advantage compared with other North American facilities.

Nameplate capacity will be 550,000 t/y of PP, including impact and random copolymers. Pembina said the market for PP continues to see favorable long-term fundamentals with global demand growth outpacing world economic growth.

CKPC has licensed Honeywell UOP’s C3 Oleflex technology for the PDH unit and W.R. Grace’s Unipol process for the PP plant.

The complex is expected to go into operation in mid-2023, subject to receiving environmental and regulatory approvals.

Investment costs are estimated at $4.5 million. Pembina’s net investment of $2.5 million represents a 50% share in CKPC and a 100% directly owned interest in the supporting facilities, which the Canadian group will own and provide services under a long-term, take-or-pay arrangement.