Williams Moves Forward with Next Phase of Development of Planned Propane Dehydrogenation Project in Alberta
October 28 2015 - 4:30PM
Business Wire
- 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. 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.
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WilliamsMedia Contact:Tom Droege,
918-573-4034orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
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