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Kuwait’s state petchems firm PIC has signed a heads of agreement with Canadian pipeline operator and NGLs supplier Pembina for a joint feasibility study into developing a world-scale combined propane dehydrogenation (PDH) and polypropylene plant in Canada’s oil heartland of Alberta.
Pembina says the plant would process 35,000 b/d of locally produced propane in a PDH unit, which would deliver propylene feedstock for an integrated 800,000 tons/year capacity polypropylene unit. The polypropylene would be delivered in pellet form to the North American and international markets. PIC and Pembina say they will carry out a detailed technical, commercial and financial study to ensure that the project is economically feasible and aligns with their investment criteria. The study is expected to take six months, after which the partners will move to front end engineering design. A final investment decision is anticipated by mid-2017, with a view to 2020 start-up.
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