Pembina Pipeline Corporation has recently declared that it, along with Petrochemical Industries Company K.S.C. ("PIC") of Kuwait, has reached key milestones for the previously announced proposed integrated propylene and polypropylene production facility in Sturgeon County, Alberta ("PDH/PP Facility" or the "Project"). Pembina and PIC have executed 50/50 joint venture agreements (the "Joint Venture") that includes binding commercial terms in support of the Project and have formed a new entity, Canada Kuwait Petrochemical Corporation ("CKPC"). Additionally, Pembina is pleased to announce that CKPC will proceed with activities for front end engineering design ("FEED") for the Project.
"The encouraging results of the recently completed feasibility study, the previously announced award of USD 300M in royalty credits from the Alberta Government’s Petrochemicals Diversification Program, and a Joint Venture with our world class partner, PIC, gives Pembina the confidence to further advance the Project," said Stuart Taylor, Pembina’s Senior Vice President, NGL & Natural Gas Facilities. "This Project represents a material extension of our natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons."
The decision to proceed with FEED, execution of definitive Joint Venture agreements and the establishment of CKPC represent major milestones for Pembina and PIC. The anticipated cost of FEED is expected to represent approximately 2.0 percent to 2.5 percent of the Project’s current cost estimate. FEED activities are expected to be completed by late 2018, followed by a final investment decision ("FID") from each partner.