Pembina to build propane export terminal in western Canada

Pembina Pipeline Corp. signed a non-binding letter of intent with Prince Rupert Legacy Inc., a subsidiary of the City of Prince Rupert, to develop an LP gas export terminal on Watson Island in British Columbia, Canada.

Pembina has begun site assessment with key stakeholders, including the aboriginal communities in western Canada. Based on the company’s initial assessments, the site is ideal for the development of an export terminal with a capacity of about 20,000 barrels per day of propane export with an estimated capital cost of $125 million to $175 million, according to Pembina. The company expects a project timeline of two years from its final investment decision.

“Watson Island has promising potential as an [LP gas] export terminal location,” says Stuart Taylor, senior vice president of NGL and natural gas facilities at Pembina. “In light of our plans to develop a world-scale polypropylene production facility, the smaller export facility we are contemplating for Watson Island – utilizing smaller ships and ensuring very competitive per-unit export facility costs – makes good sense for Pembina.”

Located about nine miles south of Prince Rupert, British Columbia, the Watson Island site has several positive attributes that make it an attractive candidate for Pembina’s West Coast terminal, the company says. The location features a sheltered berth and existing dock for activities associated with propane export. It also offers well-established rail connections between Redwater, Alberta, Canada, and Watson Island, as well as efficient shipping routes to Asian, Central American, North American and South American markets.

Pembina secured a long-term permit in support of this project. The company has been working to develop a propane export terminal served by national railway on the West Coast of Canada for the past few years in response to changes in the propane productive capabilities of the Western Canadian Sedimentary Basin, the company adds. Pembina aims to provide growing Canadian propane supply with access to diverse international markets while complementing the company’s expanding integrated service offerings for the energy products derived from natural gas.

“Pembina is excited to advance its West Coast propane export strategy,” Taylor says. “This project, in conjunction with Pembina’s proposed integrated propylene and polypropylene production facilities, is evidence of our efforts to find new markets for western Canadian hydrocarbons, which should benefit our producer customers, local communities, partners and shareholders.”

Pembina Pipeline Corp., based in Calgary, Canada, serves as a transportation and midstream service provider that has been serving North America’s energy industry for more than 60 years.