News Post

West Coast Olefins to build $5.6B petrochemical complex in Prince George, British Columbia

West Coast Olefins of Calgary has secured a 300-acre site in the BCR Industrial Area within the City of Prince George in preparation for the construction of a $5.6 billion petrochemical project at the site. The project would include a world-scale ethylene plant and polyethylene facility and the majority of the polyethylene product would be shipped to growing Asian markets.

The overall project will include:
• An NGL Recovery Plant to recover ethane, propane, butane, and natural gas condensate from Enbridge’s West Coast Pipeline.
• An Ethylene Plant to produce 1 MMtpy of polymer-grade ethylene.
• A Polyethylene Plant to consume most of the ethylene produced.
• Associated off-site facilities and infrastructure.
Company officials also say there is a possibility of a mono-ethylene glycol plant being constructed on site to utilize the balance of the ethylene produced.

Once fully operational, the facility will create up to 1,000 permanent highly skilled jobs, while several thousand workers will be required to support the construction effort over a three-year period. Tens of millions of dollars in sustaining capital investment will be required each year to support the facility, which would provide on-going economic benefits for the community.

The company is aware of the local sensitivity to air shed concerns in the “bowl area” of Prince George, especially particulate matter and odour issues. The plant uses a low-carbon, clean-burning mixture of methane and hydrogen as its main fuel source for fired equipment that has no soot or odour and minimizes GHG emissions. We believe that this makes a strong case for how this project fits with the provincial climate action plan. For the past year, West Coast Olefins representatives have been researching Prince George, and meeting with Prince George-area contractors to investigate local capabilities to ensure that the company maximizes its use of local labour and associated construction and fabrication infrastructure. Officials have also had several meetings with First Nations, local leaders, and construction companies over the past six months.

“The Prince George facilities, using the latest available technologies and leveraging feedstock and transport advantages available in the city, will be the most competitive in North America,” says Ken James, President and CEO of West Coast Olefins. “We are overwhelmed with the level of support we have received. Mayor Hall, Council, and City staff have been very helpful in understanding the importance of economic diversification to the city.”

The distance to Asia from Prince Rupert is about half that from the U.S. Gulf Coast, James noted. Another competitive advantage, said James, is a supply of cheap Canadian natural gas, its price driven down by the shale-gas revolution in the U.S.

He said a plant in Prince George will have a $250-per-tonne advantage over product produced in the U.S. Gulf Coast and $50-$75 per tonne on product produced in Alberta

The project will be constructed within the territory of the Lheidli T’enneh First Nation and West Coast Olefins will be working closely with Chief Clay Pountney and his Council. “Lheidli T’enneh Nation looks forward to potentially partnering with West Coast Olefins to ensure that if the project is approved will provide significant economic benefits to Lheidli T’enneh and our members, and is designed and built in a way that is aligned with our values,” states Chief Pountney.

West Coast Olefins is preparing to enter the formal regulatory approval process and is targeting a final investment decision by the end of 2020, followed by a three-year construction period to bring the facilities into full commercial operation. This will include a significant public engagement and consultation process

Source: West Coast Olefins

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West Coast Olefins to build $5.6B petrochemical complex in Prince George, British Columbia

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