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Pembia indefinitely suspends $4.5 billion petrochemical project in Alberta.

Pembina Pipeline of Canada and Kuwait’s Petrochemical Industries Company through their joint venture, Canada Kuwait Petrochemical Limited Partnership, have announced that their $4.5 billion integrated propane dehydration plant (PDH) and polypropylene upgrading facility in Alberta would be indefinitely suspended.

In a recent statement, Pembina cited the construction cost risks due to the ongoing pandemic effect on the project, which remains under force majeure conditions. Pembina had already deferred its investment of $2.7 billion in the $4.5 billion dollar project in March, but today’s announcement will effectively cease any current plans for the project to continue as is.

This 550,000 tons per year propane dehydration plant (PDH) and polypropylene upgrading facility was originally expected to be in service by the middle of 2023 to turn propane into plastic pellets by way of the site’s planned integrated propane dehydrogenation and polypropylene upgrading units near the Redwater Fractionation complex.  

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