Energized / Energisé - Winter / Hiver 2017 - 10

FEATURE | ARTICLE DE FOND

Propane:

Bringing Value Back Home to Canadians
PROPANE IS BRINGING the value back home to Canadians with
two petrochemical facilities for Alberta's Industrial Heartland
region. Canada Kuwait Petrochemical Corporation (CKPC) and Inter
Pipeline are proposing to each build facilities that would convert
propane into higher value polypropylene, an important building
block for plastic products used in everything from car parts to
Canadian currency.
They are game changers for Alberta
and the Canadian economy. These
facilities have significant potential
to create stable jobs and new value
chains that will provide benefit for
decades to come.
Canada typically ships its propane,
and the jobs that go with it, to the
U.S. for processing. But Alberta's
Petrochemical
Diversification
Program (PDP) will help bring - and
keep - the value in Canada. The program offered royalty credits for the
construction of value-added plants
using methane or propane to make
other products.
"Through this program, for the first
time in Alberta, we'll process propane
extracted from natural gas resources into value-added plastic products that people all over the world
use every day," Alberta Minister of
Energy Margaret McCuaig-Boyd said
to Energized in an email. "The projects mean a 700 per cent value-add
to feedstock and support thousands
of construction jobs and more than
1,400 direct and indirect jobs when
projects are up and running."
CKPC is a 50/50 joint venture
between Pembina Pipeline Corp.
and Kuwait-based Petrochemical
Industries Co. CKPC has been
awarded up to $300 million in royalty credits for their CA$3.8-billion -
CA$4.2-billion project. The propane
dehydrogenation (PDH) and polypropylene facilities, to be located
10

ENERGIZED | ÉNERGISÉ

in Sturgeon County, would process
about 22,000 barrels per day of propane, then convert it to polypropylene. A final investment decision is
expected in early 2019.
Inter Pipeline has been approved to
receive up to $200 million in royalty
credits to build a PDH plant and polypropylene facility located near Fort
Saskatchewan that would also process about 22,000 barrels per day of
propane. These petrochemical facilities combined are expected to cost
CA $3.15 billion and if approved, enter
commercial service by mid-2021. A
final investment decision is expected
this year.
"Inter Pipeline has the opportunity
to break the traditional Canadian business model of exporting our raw products and adding value elsewhere. We
can provide a home grown alternative,"
said David Chappell, Sr. Vice President,
Petrochemical Development. "It's a
better way of doing business within
a more diverse and self-sufficient
economy."

"The propane dehydrogenation
plant and polypropylene facility
meet significant government mandates of job creation, innovation, and
economic diversification via a higher
quality product made in Canada. The
facility will generate high-quality jobs,
attract direct foreign investment,
and address trade implications as
Canada currently relies on 100 per
cent imported polypropylene."
Taylor said the project has significant
potential to further expand economic
diversification and develop the economy. "Our facility will use advanced,
proprietary technology, bringing in

CREATING ECONOMIC
DIVERSIFICATION
The PDP is designed to spur innovation, and strengthen and diversify
Alberta's economy. Stuart Taylor,
Pembina's Senior Vice-President, NGL
and Natural Gas Facilities and CKPC
Director, said the value-add petrochemical facilities meet this criteria
on every level.

Polypropylene Splitter being fabricated for Inter Pipeline in an Edmonton
area vessel shop. Early civil works
underway at the site of Inter Pipeline's
facility.



Table of Contents for the Digital Edition of Energized / Energisé - Winter / Hiver 2017

Message from the Vice-Chair | Mot du vice-président du conseil
What can You Make Out of Propane? | Que pouvons-nous faire avec le propane ?
Propane: Bringing Value Back Home to Canadians | Propane : plus de valeur pour les Canadiens
Renewable Propane: A Clean Fuel Made Even Cleaner | Propane renouvelable : un carburant propre qui se fait encore plus propre
Winter May Bring Propane Supply Challenges | L’hiver pourrait avoir certaines incidences sur les réserves de propane
The CPA: Working for You | Nous travaillons pour vous
Auto Propane: A Leading Clean Alternative Fuel for Buses | L’auto-propane, principal carburant de remplacement pour les autobus
Members on the Move | Membres en action
Index to Advertisers | Index des annonceurs
Energized / Energisé - Winter / Hiver 2017 - intro
Energized / Energisé - Winter / Hiver 2017 - ebelly1
Energized / Energisé - Winter / Hiver 2017 - ebelly2
Energized / Energisé - Winter / Hiver 2017 - cover1
Energized / Energisé - Winter / Hiver 2017 - cover2
Energized / Energisé - Winter / Hiver 2017 - 3
Energized / Energisé - Winter / Hiver 2017 - 4
Energized / Energisé - Winter / Hiver 2017 - 5
Energized / Energisé - Winter / Hiver 2017 - Message from the Vice-Chair | Mot du vice-président du conseil
Energized / Energisé - Winter / Hiver 2017 - 7
Energized / Energisé - Winter / Hiver 2017 - 8
Energized / Energisé - Winter / Hiver 2017 - What can You Make Out of Propane? | Que pouvons-nous faire avec le propane ?
Energized / Energisé - Winter / Hiver 2017 - Propane: Bringing Value Back Home to Canadians | Propane : plus de valeur pour les Canadiens
Energized / Energisé - Winter / Hiver 2017 - 11
Energized / Energisé - Winter / Hiver 2017 - 12
Energized / Energisé - Winter / Hiver 2017 - 13
Energized / Energisé - Winter / Hiver 2017 - 14
Energized / Energisé - Winter / Hiver 2017 - 15
Energized / Energisé - Winter / Hiver 2017 - Renewable Propane: A Clean Fuel Made Even Cleaner | Propane renouvelable : un carburant propre qui se fait encore plus propre
Energized / Energisé - Winter / Hiver 2017 - 17
Energized / Energisé - Winter / Hiver 2017 - Winter May Bring Propane Supply Challenges | L’hiver pourrait avoir certaines incidences sur les réserves de propane
Energized / Energisé - Winter / Hiver 2017 - 19
Energized / Energisé - Winter / Hiver 2017 - 20
Energized / Energisé - Winter / Hiver 2017 - 21
Energized / Energisé - Winter / Hiver 2017 - 22
Energized / Energisé - Winter / Hiver 2017 - The CPA: Working for You | Nous travaillons pour vous
Energized / Energisé - Winter / Hiver 2017 - 24
Energized / Energisé - Winter / Hiver 2017 - 25
Energized / Energisé - Winter / Hiver 2017 - 26
Energized / Energisé - Winter / Hiver 2017 - 27
Energized / Energisé - Winter / Hiver 2017 - Auto Propane: A Leading Clean Alternative Fuel for Buses | L’auto-propane, principal carburant de remplacement pour les autobus
Energized / Energisé - Winter / Hiver 2017 - 29
Energized / Energisé - Winter / Hiver 2017 - 30
Energized / Energisé - Winter / Hiver 2017 - Members on the Move | Membres en action
Energized / Energisé - Winter / Hiver 2017 - 32
Energized / Energisé - Winter / Hiver 2017 - 33
Energized / Energisé - Winter / Hiver 2017 - Index to Advertisers | Index des annonceurs
Energized / Energisé - Winter / Hiver 2017 - cover3
Energized / Energisé - Winter / Hiver 2017 - cover4
http://www.nxtbook.com/naylor/FUMT/FUMT0118
http://www.nxtbook.com/naylor/FUMT/FUMT0317
http://www.nxtbook.com/naylor/FUMT/FUMT0217
http://www.nxtbook.com/naylor/FUMT/FUMT0117
http://www.nxtbook.com/naylor/FUMT/FUMT0316
http://www.nxtbook.com/naylor/FUMT/FUMT0216
http://www.nxtbook.com/naylor/FUMT/FUMT0116
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