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11-05-2017, 08:27 PM
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Join Date: Aug 2012
Posts: 2,169
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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
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11-05-2017, 09:15 PM
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Banned
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Join Date: Nov 2011
Location: Alberta
Posts: 10,937
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Building a cracker in Alberta, pretty cool. No mention of where?
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11-06-2017, 06:06 AM
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Join Date: Nov 2011
Location: Stettin
Posts: 56
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Quote:
Originally Posted by silverdoctor
Building a cracker in Alberta, pretty cool. No mention of where?
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Near Redwater
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11-06-2017, 05:48 AM
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Join Date: Mar 2008
Location: Under your stairs
Posts: 633
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Quote:
Originally Posted by 79ford
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
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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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11-06-2017, 05:57 AM
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Join Date: Jan 2008
Location: Calgary Perchdance
Posts: 18,776
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Quote:
Originally Posted by ROA
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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Agreed. False point however good to have any plant. NIMBY will likely kill it. Or regulations. Hope the start soon.
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.
__________________
It is not the most intellectual of the species that survives; it is not the strongest that survives; but the species that survives is the one that is able best to adapt and adjust to the changing environment in which it finds itself. Charles Darwin
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11-06-2017, 06:06 AM
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Join Date: Aug 2012
Posts: 2,169
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Quote:
Originally Posted by ROA
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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Stack, meaning fuel gas vs sales, not flare stack.
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.
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11-06-2017, 10:03 AM
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Join Date: Mar 2016
Location: Peace Country
Posts: 573
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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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Raised on the farm in the bush and on the rigs...
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11-06-2017, 12:14 PM
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Join Date: Jul 2015
Posts: 403
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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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11-06-2017, 08:06 PM
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Join Date: Aug 2012
Posts: 2,169
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Quote:
Originally Posted by mac1983
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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22 000 barrels of propane isnt much from what I understand, alberta produces hundreds of thousands of barrels of propane, butane, pentane etc. Everyday. Thats why i find it soo amazing 22 000 barrels can feed such a beast of a plant. 4.2 billion is usually greek for 8-10 billion total cost in alberta, lol
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.
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11-06-2017, 08:19 PM
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Join Date: Mar 2016
Location: Peace Country
Posts: 573
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Quote:
Originally Posted by 79ford
22 000 barrels of propane isnt much from what I understand, alberta produces hundreds of thousands of barrels of propane, butane, pentane etc. Everyday. Thats why i find it soo amazing 22 000 barrels can feed such a beast of a plant. 4.2 billion is usually greek for 8-10 billion total cost in alberta, lol
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.
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https://www.aer.ca/data-and-publicat...-supply-demand
seems like alot of propane coming online...
Still if they can make more money off of propane residential customers they will.
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Raised on the farm in the bush and on the rigs...
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08-11-2018, 08:17 AM
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Join Date: Jun 2007
Location: Edmonton
Posts: 2,100
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Quote:
Originally Posted by 79ford
4.2 billion is usually greek for 8-10 billion total cost in alberta, lol
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Agreed. No large facility project has ever been built in this province for the original number it was projected to cost. Although costs have leveled off in recent years, I'll put money on it today this being a minimum +50% more than the 4.2 billion when it is all said and done.
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.
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