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Released December 06, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) has won the front-end engineering design (FEED) contract for a proposed integrated propane dehydrogenation (PDH) and polypropylene (PP) facility in Alberta, the company said Tuesday.
Located in Sturgeon County, the project is being developed by Canada Kuwait Petrochemical Corporation (CKPC), a 50:50 joint venture of Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) and Petrochemical Industries Company of Kuwait. CKPC Director Waleed Al-Bader said in a Jacobs press release that the engineering firm was picked after a global search.
"In execution of the FEED, Jacobs will utilize resources from multiple centers of excellence located in Calgary, Houston and Charleston, West Virginia, with a significant portion of the project scope performed in Canada," Jacobs said. CKPC said it expects to see the completion of the FEED process by late 2018, followed by a final investment decision. The project could see completion in 2023. However, Industrial Info assesses the project as having a low probability of moving forward as planned. For more information, see Industrial Info's project report.
Pembina Pipeline expects to allocate C$35 million (US$27.6 million) to complete the FEED work for the proposed facility, as part of its C$1.3 billion (US$1 billion) capital spending plan for 2018. For more information on Pembina's capital spending plan, see December 5, 2017, article - Pembina to Develop Second Propane Export Terminal in British Columbia.
In July, CKPC picked Honeywell International's (NYSE:HON) (Morris Plains, New Jersey) UOP technology for the project, to produce 550,000 metric tons per year of polymer-grade propylene. Honeywell said it also will provide the process design package, proprietary and non-proprietary equipment, on-site operator training, technical services for startup and continuing operation, and key catalysts and adsorbents for the project.
The facility would consume 22,000 barrels per day of propane from Pembina's Redwater fractionation complex and other regional facilities, and produce more than 1.2 billion pounds per year of polypropylene, to be sold on North American and global markets.
If approved, the CKPC project would benefit from C$300 million ($236 million) in royalty credits under Alberta's petrochemicals diversification program. For more information, see May 19, 2017, article - Alberta Gains Traction with Petrochemicals Incentives.
Industrial Info is tracking six PDH capital projects in North America with a combined value of more than $8.8 billion. In Fort Saskatchewan, Alberta, Inter Pipeline Limited (TSX:IPL) (Calgary, Alberta) (formerly Williams Energy Canada) is developing a proposed a 1.1 billion-pound-per-year PDH and 1 billion-pound-per-year PP complex, with potential completion in 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) is the engineering and procurement contractor. The company said in its third-quarter earnings report on November 9 that it was working to secure commercial contracts for the proposed operation. Negotiations with potential counterparties for long-term contracts with strong "take or pay" features were proceeding, Inter Pipeline said, adding that it anticipated making an investment decision on the project before the end of this year. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Located in Sturgeon County, the project is being developed by Canada Kuwait Petrochemical Corporation (CKPC), a 50:50 joint venture of Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) and Petrochemical Industries Company of Kuwait. CKPC Director Waleed Al-Bader said in a Jacobs press release that the engineering firm was picked after a global search.
"In execution of the FEED, Jacobs will utilize resources from multiple centers of excellence located in Calgary, Houston and Charleston, West Virginia, with a significant portion of the project scope performed in Canada," Jacobs said. CKPC said it expects to see the completion of the FEED process by late 2018, followed by a final investment decision. The project could see completion in 2023. However, Industrial Info assesses the project as having a low probability of moving forward as planned. For more information, see Industrial Info's project report.
Pembina Pipeline expects to allocate C$35 million (US$27.6 million) to complete the FEED work for the proposed facility, as part of its C$1.3 billion (US$1 billion) capital spending plan for 2018. For more information on Pembina's capital spending plan, see December 5, 2017, article - Pembina to Develop Second Propane Export Terminal in British Columbia.
In July, CKPC picked Honeywell International's (NYSE:HON) (Morris Plains, New Jersey) UOP technology for the project, to produce 550,000 metric tons per year of polymer-grade propylene. Honeywell said it also will provide the process design package, proprietary and non-proprietary equipment, on-site operator training, technical services for startup and continuing operation, and key catalysts and adsorbents for the project.
The facility would consume 22,000 barrels per day of propane from Pembina's Redwater fractionation complex and other regional facilities, and produce more than 1.2 billion pounds per year of polypropylene, to be sold on North American and global markets.
If approved, the CKPC project would benefit from C$300 million ($236 million) in royalty credits under Alberta's petrochemicals diversification program. For more information, see May 19, 2017, article - Alberta Gains Traction with Petrochemicals Incentives.
Industrial Info is tracking six PDH capital projects in North America with a combined value of more than $8.8 billion. In Fort Saskatchewan, Alberta, Inter Pipeline Limited (TSX:IPL) (Calgary, Alberta) (formerly Williams Energy Canada) is developing a proposed a 1.1 billion-pound-per-year PDH and 1 billion-pound-per-year PP complex, with potential completion in 2021. Fluor Corporation (NYSE:FLR) (Irving, Texas) is the engineering and procurement contractor. The company said in its third-quarter earnings report on November 9 that it was working to secure commercial contracts for the proposed operation. Negotiations with potential counterparties for long-term contracts with strong "take or pay" features were proceeding, Inter Pipeline said, adding that it anticipated making an investment decision on the project before the end of this year. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
