US Williams gains further NGLs and olefins from Canada oil sands

26 September 2012 15:17  [Source: ICIS news]

TORONTO (ICIS)--Williams has sealed a deal to source an additional 15,000 bbl/day of natural gas liquids (NGLs) and olefins from Canadian oil sands producers, the US-based energy and petrochemicals firm said on Wednesday.

Under the agreement, Williams will extract, transport, fractionate, own and market the NGLs and olefins, which are recovered from off-gases generated by oil sands upgrading plants in Alberta.

The NGLs/olefins recovered are expected to be about 12,000 bbl/day by mid-2015, growing to about 15,000 bbl/day by 2018. Financial terms were not disclosed.

Williams will fractionate the NGLs/olefins mixture into an ethane/ethylene mix, propane, polymer grade propylene, normal butane, an alkylation feed and condensate at its Redwater plant near Edmonton, it said.

The ethane price risk associated with the deal is mitigated because of William’s previously-announced long-term agreement to supply Canada-based NOVA Chemicals with up to 17,000 bbl/day of ethane and ethylene, it added.

The propane recovered will be sold into the local propane market and could be used as feedstock at Williams’ proposed propane dehydrogenation (PDH) plant in Canada, it said.

“This new agreement will build on the unique expertise and large-scale infrastructure we have built in Canada,” said David Chappell, president of Williams Energy in Canada.

“The scale that we are building here – with fractionation, distribution and storage – gives us the ability to generate significant long-term incremental value from our operations,” Chappell said.

“The new operations will also further reduce greenhouse gas and sulphur dioxide emissions from the upgraders’ oil sands operations, and produce valuable commodities that were previously being burned,” he added.

Williams began using off-gases from Canadian oil sands as a feedstock in a propylene plant in Edmonton in 2001.


By: Stefan Baumgarten
+1 713 525 2653



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