Williams Energy is mulling an investment of over US$800 mln to build a facility near Redwater to convert propane into a higher value feedstock for the petrochemical industry, as per The Edmonton Journal. The propane dehydrogenation (PDH) plant will be located at its Redwater site, about 6 kms northeast of Fort Saskatchewan, to produce propylene to be sold into the US Gulf Coast market. A by-product of the process, hydrogen, would be sold to refineries and upgraders in the Alberta market.
David Chappell, president of Williams Energy Canada, said the proposal, expected to cost between US$600-800 mln, is a natural fit for the company’s Redwater plant. “Building a PDH facility would further build on the value and expertise that we’ve built in Canada and serve the booming North American petrochemical market,” he said. “We’ve built a unique business in Canada and we’re continuing to explore ways to capture more of the off-gas available from existing and planned upgraders and add more value to the products we produce.”
The Redwater plant converts the extracted gases into five petrochemical feedstocks, which are sold throughout North America. The company expects the proposed Redwater expansion would see it produce about 500,000 tons of petrochemical feedstock each year.