Pembina Pipeline Corporation along with Petrochemical Industries Company K.S.C. of Kuwait, has reached key milestones for the previously announced proposed integrated propylene and polypropylene production facility in Sturgeon County, Alberta. Pembina and PIC have executed 50/50 joint venture agreements that include binding commercial terms in support of the Project and have formed a new entity, Canada Kuwait Petrochemical Corporation (CKPC). Pembina has confirmed that CKPC will proceed with activities for front end engineering design (FEED) for the Project.
The decision to proceed with FEED, execution of definitive Joint Venture agreements and the establishment of CKPC represent major milestones for Pembina and PIC. Deliverables of FEED include a refined capital cost estimate, a project execution plan, regulatory applications, an updated construction schedule and projected in-service date, among numerous other items. FEED activities are expected to be completed by late 2018, followed by a final investment decision (FID) from each partner.
The Project is anticipated to produce in excess of GBP 1.2B per year of polypropylene which would be transported to North American and global markets.
