On-Site Magazine

Pembina restarts two key projects, but suspends $4.9B polypropylene plant

December 16, 2020   By The Canadian Press
Construction

CALGARY—Pembina Pipeline Corp. is planning $785 million in capital spending next year as it moves to restart work on two key projects.

The company said Dec. 14 it will resume construction of the next phase of its Peace Pipeline expansion and go ahead with the restart of its Empress co-generation facility.

The pipeline expansion includes a new pipeline and associated infrastructure in the LaGlace-Valleyview-Fox Creek corridor in Alberta.

Pembina said the initial capacity has been reduced to 160,000 barrels per day from 240,000, however the capital cost estimate has also been revised lower, by approximately $175 million, to $775 million.

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The Empress co-generation facility will use natural gas to generate up to 45 megawatts of electrical power. The project is expected to cost $120 million.

Pembina also said it is indefinitely suspending work on its $4.9-billion joint venture project with Kuwait’s Petrochemical Industries Co. on an integrated propane dehydration plant and polypropylene upgrading facility.

The company said it will take a material impairment on its investment in Canada Kuwait Petrochemical Limited Partnership in its fourth quarter.

Pembina has a 50 per cent interest in the joint venture project near Edmonton designed to turn propane into plastic pellets.