Williams Moves Forward with Next Phase of Development of Planned Propane Dehydrogenation Project in Alberta
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Propane Dehydrogenation facility will convert low-cost Alberta
propane into higher-value propylene sold primarily on fee for service
basis
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Williams signs propylene sale agreement that enables building of
third-party adjacent polypropylene plant
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Low-cost feedstocks and improved logistics create sustainable
competitive advantage
Williams (NYSE: WMB) announced today that it is proceeding to the next
phase of development with its planned propane dehydrogenation (PDH)
facility located near Edmonton, Alberta. The plant will have a capacity
of 525 KTA of polymer grade propylene production and will use low-cost,
locally sourced propane as its feedstock.
Concurrently, Williams has signed an agreement with privately held North
American Polypropylene (NAPP). NAPP is an affiliate of Goradia Capital,
a private equity global developer of projects and marketer of
petrochemical products.
In the agreement, NAPP will purchase 450 KTA of propylene on a 25-year
term firm fee for service basis for the production of homopolymer
polypropylene, a recyclable plastic used widely in many consumer and
industrial products. NAPP’s project will be based on UNIPOL™
polypropylene technology and will be co-located on the same site as
Williams’ PDH unit.
The next phase includes primarily detail engineering and certain
commitments to long-lead equipment. Williams expects a final investment
decision by the second half of 2016. Planned startup of the PDH facility
and the polypropylene plant is at the end of 2019.
“Together these projects will add value to Alberta’s natural resources
creating jobs and diversification of the Alberta economy,” said David
Chappell, president, Williams Energy Canada. “Once operational, the
complex will be globally competitive and well positioned to access North
American and world markets. Longer term, this platform will provide the
foundation for a larger petrochemical complex, including a co-located
PDH II facility.”
About Goradia Capital
Goradia Capital is a private equity global developer of projects.
Goradia Capital has participated in large petrochemical projects in
Brazil, Middle East, Singapore and elsewhere. Goradia Capital co-invests
as well as owns and operates manufacturing facilities in the United
States. In addition, a Goradia Group company is a large marketer of
petrochemical products with more than $4 billion in annual sales with
more than 5,000 customers in over 100 countries and boasts global
relationships and regional distributorships with the leading producers
of petrochemicals spanning numerous major markets and also plays a key
role in the development of their value added polymers and chemicals.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure
connecting North American natural gas and natural gas products to
growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa,
Okla., Williams owns approximately 60 percent of Williams Partners L.P.
(NYSE: WPZ), including all of the 2 percent general-partner interest.
Williams Partners is an industry-leading, large-cap master limited
partnership with operations across the natural gas value chain from
gathering, processing and interstate transportation of natural gas and
natural gas liquids to petchem production of ethylene, propylene and
other olefins. With major positions in top U.S. supply basins and also
in Canada, Williams Partners owns and operates more than 33,000 miles of
pipelines system wide – including the nation’s largest volume and
fastest growing pipeline – providing natural gas for clean-power
generation, heating and industrial use. Williams Partners’ operations
touch approximately 30 percent of U.S. natural gas. www.williams.com
Portions of this document may constitute “forward-looking statements”
as defined by federal law. Although the company believes any such
statements are based on reasonable assumptions, there is no assurance
that actual outcomes will not be materially different. Any such
statements are made in reliance on the “safe harbor” protections
provided under the Private Securities Reform Act of 1995. Additional
information about issues that could lead to material changes in
performance is contained in the company’s annual reports filed with the
Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006475/en/
Copyright Business Wire 2015
Source: Business Wire
(October 28, 2015 - 4:30 PM EDT)
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