TORONTO (ICIS)--Canada Kuwait Petrochemical Corp (CKPC) is evaluating the impact of the coronavirus health crisis on polypropylene (PP) demand as it decides when and how to proceed with its propane dehydrogenation/PP project in Canada’s Alberta province.
In January, CKPC had indicated a project startup of H2 2023. However, in March the project was deferred, with officials citing the coronavirus pandemic and the decline in global energy prices.
“The full impact of Covid-19 on the global economy and future demand for PP remains uncertain and needs to be carefully evaluated,” CKPC joint venture partner Pembina Pipeline said in a project update late on Thursday.
Future and ongoing risks needed to be understood and priced into project cost estimates, Pembina said.
Also, Canadian federal and provincial authorities, and the project financing syndicate, will need to re-confirm “original investment parameters”, the company said.
“The project restart is subject to CKPC management committee approval and each partners' board approval,” Pembina said.
Meanwhile, “key talent and knowledge have been retained, all to preserve project value for an efficient potential re-start,” Pembina added.
The CKPC joint venture between Pembina Pipeline and Kuwait’s Petrochemical Industries Company (PIC) involves building an integrated PDH/PP complex to convert 23,000 bbl/day of low-cost Alberta-sourced propane into PP.
In related news, Canadian midstream energy company Inter Pipeline said that construction at the PDH/PP project it is developing in Alberta is proceeding.
In Q2, the project met several construction milestones, including the installation of the electrical systems, the interior components of the splitter tower and the condensers.
Activities at the PP plant included the completion of a reactor structure and the installation of a cycle gas compressor and flare stack.
In addition, Inter Pipeline made progress on a rail loading yard, which is needed to transport the PP to market, it said.
Meanwhile, Inter Pipeline continues to look for a partner to purchase “a material interest” in the project, which is known as the “Heartland Petrochemical Complex”.
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