31 January 2013 00:19 [Source: ICIS news]
HOUSTON (ICIS)--US-based Williams has awarded a contract to Fluor to provide preliminary engineering services for a proposed propane dehydrogenation (PDH) project in Canada, Flour announced on Wednesday.
The contract was booked in the fourth quarter of 2012 for an undisclosed amount, Fluor said.
The PDH facility primarily would use the propane recovered at Williams’ existing fractionation facility in Redwater, Alberta, and convert it into polymer-grade propylene.
“Fluor is pleased to have been selected by Williams to provide preliminary engineering services for what would be Canada’s first propane dehydrogenation facility,” said Peter Oosterveer, president of Fluor’s Energy and Chemicals Group. “We are encouraged by the opportunities that the expansion of the Canadian oil sands provides for the chemicals industry in North America.”
If built, the PDH unit would cost $600m-$800m (€444m-€592m) and would have a capacity of 1bn lb/year (454,000 tonnes/year), Williams has said.
The company would ship the propylene produced by the unit to the US Gulf coast, with the hydrogen produced set to be sold locally, the company has said.
The plant's feedstock would be the propane that Williams recovers from its Redwater facility near Edmonton, the company has said.
($1 = €0.74)
Additional reporting by Al Greenwood
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