Canada Kuwait Petrochemical (CKPC) has executed a lump sum engineering, procurement and construction contract for a propane dehydrogenation facility within Pembina Pipelines integrated PDH and polypropylene upgrading facility.
With this contract, CKPC has fixed around 60% of the cost of the facility so far. Following this contract, Pembina has revised its proportionate share of the capital cost of the facility, including the 100% directly-owned supporting facilities, to $2.7 billion.
Heartland Canada partners, a 50/50 partnership between Fluor Canada and Kiewit Construction Services, is the EPC contractor for the facility.
The facility is expected to be in commercial service in the second half of 2023.
Mick Dilger, Pembina’s president and CEO says: ‘This project is highly strategic for Pembina and our producer customers in the Western Canadian Sedimentary Basin. It offers a new demand source for domestically produced propane and supports ongoing development of Canada’s world-class hydrocarbon resources.’