US-based energy company Williams Cos. is exploring
building a propane dehydrogenation (PDH) facility in Alberta,
Canada, the company said on Friday.
A new PDH facility, which would be the first in Canada,
would allow Williams to significantly increase its production
of polymer-grade propylene (PGP) from Canadian operations.
Williams is the only company in Canada producing
polymer-grade propylene, a petrochemical feedstock used in plastics
Williams would primarily use the propane it recovers at its
Redwater facility near Edmonton, Alberta, as feedstock for the new PDH facility,
which would convert the propane into higher-value propylene
that will be transported to the US Gulf coast.
The associated hydrogen by-product would be sold locally in
the Alberta market.
"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," said David
Chappell, president of Williams Energy Canada.
"Besides our expertise in extracting and marketing these
products, we have the infrastructure in place with
fractionation, distribution and storage to fully realize the
value from a new PDH facility, he continued.
"Because of our existing facilities, we would be able to
capture value from PDH production byproducts - butane/butylene
and ethane/ethylene - that another PDH operator would have to
"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 to add more
value to the products we produce."
Williams' proposed PDH facility in Canada would have an
annual capacity of approximately 1 billion pounds, the company
Williams estimates capital expenditures of approximately
$600 million to $800 million that would be funded primarily
with international cash on hand.