Williams (WMB) Proposed Building First Propane Dehydrogenation Facility in Canada

July 19, 2012 5:39 PM EDT Send to a Friend
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Williams (NYSE: WMB) is exploring building a propane dehydrogenation (PDH) facility in Alberta, Canada. A new PDH facility, which would be the first in Canada, would allow Williams to significantly increase its production of polymer-grade propylene from its Canadian operations. Williams is the only company in Canada producing polymer-grade propylene, a valuable petrochemical feedstock used in plastics manufacturing.

Williams would primarily use the propane it recovers at its Redwater facility near Edmonton, Alberta, as feedstock for the new PDH facility, which would convert the propane into higher-value propylene that will be transported to the U.S. Gulf Coast. The associated hydrogen by-product would be sold locally in the Alberta market.

Williams’ proposed PDH facility in Canada would have an annual capacity of approximately 1 billion pounds. The company estimates capital expenditures of approximately $600 million to $800 million that would be funded primarily with international cash on hand.


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