The final investment decision by Canada Kuwait Petrochemical Corporation (CKPC), which includes Calgary-based Pembina Pipeline Corp., will see construction of a petrochemical upgrading facility in Sturgeon County.
At the peak of construction, more than 3,000 workers will be on site, with the project expected to create over 200 full-time operations and head office jobs upon completion.
“Led by thousands of Alberta workers and a Calgary-based company, this project is truly Made-in-Alberta. By adding value to resources owned by all Albertans, we’re putting economic diversification first and seizing opportunities to upgrade more resources right here in this province.”
~Rachel Notley, Premier
The complex will process about 23,000 barrels per day of Alberta propane into polypropylene, which is a much higher-value plastic material used around the world to make products such as food packaging, auto parts and electronics.
CKPC was approved in 2016 to receive up to $300 million in royalty credits under the first Made-in-Alberta program to encourage private investment in petrochemical upgrading.
“This announcement is the culmination of many years of hard work with our partner to develop a project that is well-positioned to capitalize on Alberta’s abundant supply of propane and undertake value-added processing that benefits all Albertans. We want to thank the Government of Alberta for providing the incentive and vision that has helped make this investment a reality and we want to particularly thank the selection panel for their hard work and the consideration of Pembina’s application.”
~Mick Dilger, president and CEO, Pembina Pipeline Corp.
Construction is expected to start in 2019, with the complex fully operational by mid-2023. The project will receive royalty credits after the facility has been constructed and is in operation.
Another project, Inter Pipeline’s $3.5-billion Heartland Petrochemical Complex, is already under construction near Fort Saskatchewan as a result of this program. The complex is a similar gas-to-plastics operation, employing about 2,300 people during construction with 180 full-time jobs upon completion.