Williams Advances Unique Position in Canada with Startup of Second Offgas Processing Plant
March 23 2016 - 8:00AM
Business Wire
- New plant “testament to innovation,”
says Alberta’s Minister of Environment
- Designed to reduce CO2 emissions from
oil sands production facility by approximately 200,000 tonnes per
year
- Adds 15,000 BPD, or 60%, to Williams’
NGL production capacity in Canada; Domestically produced petchem
feedstocks to support Canadian manufacturing, jobs
- Key asset in Williams’ unrivaled
value-add Canadian midstream and petchem business backed by
multi-decade contracts
Williams (NYSE: WMB) today announced the startup of its second
offgas liquids extraction plant, a key asset in the company’s
Canadian midstream and petchem complex. The new plant boosts
domestic production of petchem feedstocks and significantly reduces
emissions in the oil sands production process while recovering
valuable natural gas liquids (NGLs) and olefins.
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Williams Canada operations reducing
emissions.
Serving an upgrader facility north of Fort McMurray, Alberta,
the plant is designed to reduce emissions of carbon dioxide (CO2) –
a greenhouse gas – by an average of approximately 200,000 tonnes
per year and reduce emissions of sulphur dioxide (SO2) – a
contributor to acid rain – by an average of approximately 2,800
tonnes per year.
Williams is the only company extracting and fractionating
NGL/olefin mixes from oil sands upgrader offgas. Its first plant of
this kind serves the upgrader of another third-party oil sands
producer. The two plants recover ethane, propane, propylene and
other liquids from the upgraders’ offgas streams. Williams then
transports, fractionates and markets the products.
“This new offgas plant at the upgrader is helping the
environment and creating value from what was previously a low-value
oil sands resource,” said David Chappell, president, Williams
Energy Canada. “It adds to our world-class, long-life complex of
assets with a highly sustainable competitive advantage in a key
North American energy hub.”
The plant increases by 60 percent the amount of NGLs produced by
Williams in Canada to a total of approximately 40,000 barrels per
day. At peak construction the project employed 1,200 workers and
more than a dozen permanent staff operate the facility.
Alberta’s Minister of Environment and Parks, Shannon Phillips,
who is also Alberta’s Minister Responsible for the Climate Change
Office, praised Williams for improving both the environment and the
economy.
“We applaud Williams Energy Canada for their efforts to reduce
greenhouse gas emissions, add value to our resources and create
good jobs here in Alberta,” said Phillips. “The startup of this
plant is a testament to the innovation of Alberta’s energy
industry.”
The Fort McKay First Nation, whose traditional land is nearby
the new facility, stated: “The Fort McKay First Nation appreciates
that the Williams facility is expected to have a positive impact on
the local air shed by reducing carbon and sulphur dioxide
emissions. This will mean a healthier future for our people and for
the environment. We are pleased to support companies that are
putting the environment first and are respectful of our traditional
lands.”
Following extraction at the upgrader, the NGL/olefins mixture
will be transported by Williams’ recently extended Boreal Pipeline
to Williams’ expanded Redwater Olefinic Fractionator (ROF), the
only olefin/paraffin fractionator in Canada. Most of the propane is
expected to feed Williams’ planned propane dehydrogenation (PDH)
facility near Edmonton for the manufacturing of polymer-grade
propylene. As previously announced, a private equity global
petrochemical group has executed a long-term contract with Williams
for 450 KTA of the propylene for polypropylene production.
“This developing complex will greatly reduce Canada’s current
dependence on polypropylene imports while spurring domestic
manufacturing and strengthening the region’s economy,” said
Chappell.
Pioneering Emissions Reductions
The offgas processing that Williams pioneered significantly
reduces emissions at its customers’ oil sands production
facilities. Williams captures and processes a rich NGL/olefins
mixture that would normally be burned as fuel by the oil sands
producer. The producer instead burns methane that Williams provides
in exchange for the NGL/olefins mixture.
The company’s two offgas processing plants in Canada together
will eventually reduce annual CO2 emissions by more than 500,000
tonnes and annual SO2 emissions by 5,500 tonnes. The CO2 emissions
reduction is equal to taking 105,000 cars off the road every year
and equal to the total yearly energy needs of 45,000 homes. To
achieve the same CO2 reduction through sequestration, 12.8 million
seedlings would need to be grown for 10 years. If offgas from all
oil sands upgraders in Alberta were captured and processed, CO2
emissions would be reduced by 1 million tonnes in total each
year.
Photos and other additional media resources related to this news
release can be accessed here:
https://blog.williams.com/media-resources-for-canadian-offgas-processing-plant/
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
Williams Partners (NYSE:WPZ)
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