22 000 barrels/day propane=4.2 billion plant?
https://www.reuters.com/article/us-k...-idUSKBN1D409K
This is pretty neat, 22 000 barrels per day of propane turned into plastic can support 4.2 billion dollar processing facility and the billions it will need in wages and maintenance over its life span. This is a pretty big win for potential processing in alberta, lots of the propane floating around these days too so they will probably make some money using something they burn up the stack in some plants the price is so low these days |
Building a cracker in Alberta, pretty cool. No mention of where?
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No body's "burning propane up the stack" on purpose period end of story. Number one you are not allowed. Number two propane is worth money. |
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Propane is never burnt. While sometimes not stripped out at a shallow or deep cut plant the gas can be sent in the pipeline hot and with higher btu can get a bump in price paid. |
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It is supposedly next to pembinas redwater fractionator, interpipeline is building another propylene facility just south of shell, the earthworks looks weell underway but i dont think they are full heartedly committed, they need to spend some 3.7 billion and that probably means borrowing money or issuing shares alooooot of shares. |
How will this affect the local residential price for propane? Once we start exporting it and processing it will it still be affordable to burn as a heating fuel?
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like anything else it will be going up as there will now be more of a demand. sorry that is just how it goes.
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Once you make propylene or polypropylene you need to rail the stuff, store it, some companies will probably make plastic widgets with it..... its an industry the size of the ethane industry, look how big those operations have gotten. Nova chemicals, dow chemical, all the feeder plants. |
https://www.aer.ca/data-and-publicat...-supply-demand
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seems like alot of propane coming online... Still if they can make more money off of propane residential customers they will. |
Some one must have a lock on propane sales for domestic use, i see 89 cents a liter down the street. Surprising some one isnt out selling cheap propane to beat the regular dealers. I think propane is worth some 15$ or so per barrel which is essentially free considering how much propane that is
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i paid 0.57/liter Oct. 13
so 1Bbl = 159 l 159x0.57=$90.63/Bbl in grande prairie. Correct my math if i'm wrong but there seems to be money in propane. That price is delivered to my farm. |
sure nice to read about another plant being constructed in the province. Thats going to provide both temporary construction and full time operation/maintenance jobs is always a good thing. I just struggle with the fact that we have to rely on foreign ownership to develop our own resources.
don't want to stir the pot just my opinion :) |
Pretty complicated market. Propane is in abundance so not much money to make on it, most of the time just covering the costs to extract it. It's more expensive to distribute it as well especially to residences.
Where the money is in is plastics especially in this day and age obviously in manufacturing. The company's target the ethane as that pays the bills when extracting gas, propane just comes with it as well as the higher hydrocarbons like butane which also aren't worth much due to being in abundance. These new plants can take the excess, cheap propane and convert it to Propylene in form of plastic pellets. It will be a first in Canada, as all the propylene is brought in from out of country. There will be more then one plant like this built by other companies in the Redwater area due to this market commodity. |
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Nice to see some diversity and local refinement occurring. Labour costs have leveled off, plethora of labour availability, low loonie, excess supply, and government incentives likely all contributing. |
Thought Williams was already building first propylene plant near Redwater, so nice to see a second plant value adding to Alberta raw material and creating lots of high paying jobs. Lots of engineers and tradesman need a few large projects for work.
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Williams in Canada is no more, Interpipeline bought them out and are building the PDH plant. Word is Pembina will be building one as well. It's a really weird relationship between the two as Interpipeline owns the Redwater fractionator too but Pembina operates it....
These plants will employ thousands to build over then next however many years and approx 180 operators alone daily. They will have full utility cogen plants and all. |
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Not too sure who all is doing the contract work, I could find out if really needed though. Probably just easiest to check out their website... http://www.interpipeline.com/operati...complexcfm.cfm
I just watched the video and it did say Kiewit construction at this point doing the work. Cessco and Dacro are doing fab work as well. |
Tremendous
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I might throw my hat in, timing is about right.
They are already seeking their panel Ops to train in Calagary. TBark |
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In addition, Inter Pipeline has 100 percent ownership interests in two offgas plants located near Fort McMurray, Alberta, an ethane-plus fractionation plant near Redwater, Alberta, and the Boreal pipeline system that connects these facilities (collectively the “offgas processing business”). The two offgas plants have the capacity to recover approximately 40,000 b/d of an ethane-plus mixture from upgrader offgas, a by-product of bitumen upgrading operations. Once extracted, the liquids mix is shipped via pipeline to Redwater where it is fractionated into marketable products and sold across North America. In 2017 the straddle plants processed an average of 2.7 bcf/d of natural gas producing an average of 89,000 b/d of NGL. In September 2016, Inter Pipeline acquired the offgas business adding ~40,000 b/d of ethane-plus production capacity bringing the combined business total production capacity to over 240,000 b/d. NGL are generally used directly as an energy product and as a feedstock for the petrochemical and crude oil refining industries. In addition, Inter Pipeline has authorized the construction of a world-scale, integrated propane dehydrogenation (PDH) and polypropylene (PP) plant. The facilities, collectively referred to as the Heartland Petrochemical Complex, are estimated to cost $3.5 billion in aggregate and will be located near Inter Pipeline’s Redwater Olefinic Fractionator in Strathcona County, Alberta |
I thought this plant is already under constructions. I have some friends there banging nails at the moment. Kiewit has it but word is Flour is taking over the office right now and then craft with in a couple months. Happy to see Union take it over, a lot of guys will leave the LRT job for it.
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Rumour mill last year was saying that it would be all union craft that builds it. But it's all non union for the mod yards. But that's just the mill talking eh.
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