Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 October 28, 2015 - 4:30 PM EDT
Print Email Article Font Down Font Up
Williams Moves Forward with Next Phase of Development of Planned Propane Dehydrogenation Project in Alberta

  • Propane Dehydrogenation facility will convert low-cost Alberta propane into higher-value propylene sold primarily on fee for service basis
  • Williams signs propylene sale agreement that enables building of third-party adjacent polypropylene plant
  • 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.

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.

Media Contact:
Tom Droege, 918-573-4034
Investor Contacts:
John Porter, 918-573-0797
Brett Krieg, 918-573-4614

Source: Business Wire (October 28, 2015 - 4:30 PM EDT)

News by QuoteMedia