Name and Location
Propane dehydrogenation (PDH) facility, Canada.

Client
Williams Companies.

Project Description
The project proposes the construction of the first PDH facility, in Alberta, Canada, which will allow Williams to significantly increase its production of polymer-grade propylene from its Canadian operations.

The facility will be located in close proximity to Williams’ existing Rewater plant.

The PDH facility will have the capacity to initially produce up to 1.1 billion pounds a year of polymer-grade propylene, with the opportunity to double capacity with a future expansion.

Williams plans to primarily use propane recovered from its expanding oil sands offgas processing operations and local propane purchases as feedstock for the new PDH facility. It will convert the propane into higher-value propylene that will be transported to the US Gulf Coast and sold to petrochemical producers. Plans are to sell the associated hydrogen by-product in the Alberta market. Williams is also exploring the development of new propylene markets for its production in Alberta. The Redwater complex includes fractionation, storage and distribution facilities and is being expanded to produce an estimated five-million barrels a year of propane and 280-million pounds a year of polymer-grade propylene from offgas, in addition to other natural gas liquids and olefins.

The addition of the new PDH facility will vastly increase Williams’ production of polymer-grade propylene. The company expects the new facility to produce one of the lowest-cost, PDH-sourced propylene feedstocks in North America.

Value
The company estimates capital expenditures of up to C$900-million to be funded with expected cash flow from Williams’ Canadian operation and international cash on hand.

Duration
Pending appropriate permitting approvals, the PDH facility is scheduled to go into service in the second quarter of 2016.

Latest Developments
Williams has selected Honeywell’s UOP as the vendor to provide the UOP Oleflex process technology for the dehydrogenation process. The technology is environmentally superior, as it uses a platinum-based catalyst system and less energy and water than competing PDH technologies.

Key Contracts and Suppliers
Fluor (preliminary engineering services) and Honeywell (process technology).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Williams Companies media contact Lorraine Royer, tel + 406 613 3222.
Fluor media contact Keith Stephens, tel +1 469 398 7624.
Honeywell, tel +1 480 353 3020.