09-01-2020

Canada Kuwait Petrochemical Corporation select Fluor

Fluor Corporation announced today that Heartland Canada Partners (HCP), Fluor’s 50/50 partnership with Kiewit Construction Services ULC, was awarded a contract to provide engineering, procurement and construction services for a new propane dehydrogenation (PDH) unit for Canada Kuwait Petrochemical Corporation (CKPC), a 50/50 joint venture between Pembina Pipeline Corporation (Pembina) and Kuwait's Petrochemical Industries Company K.S.C. (PIC). The new PDH unit is part of CKPC’s integrated PDH plant and polypropylene upgrading facility that will be located in Sturgeon County, Alberta, Canada. Fluor expects to book its portion of the contract value in the first quarter of 2020.

“With more than 25 million hours of construction experience in Alberta, we bring together two industry-leading contractors to deliver end-to-end engineering, procurement and construction services for CKPC’s new PDH unit – the third world-scale facility of its kind for Fluor in recent years,” said Mark Fields, group president of Fluor’s Energy & Chemicals business. “Our partnership is committed to building a safe and reliable facility that not only fosters a positive economic impact but also provides a long-term, sustainable solution for polypropylene production in Canada.”

HCP and CKPC worked collaboratively throughout the process to de-risk the project for the benefit of both parties.

When complete, CKPC’s integrated PDH plant and polypropylene upgrading facility will convert locally sourced, low-cost propane into 550,000 tons per year of polypropylene. Polypropylene is used to manufacture a broad range of consumer products including automobile parts, food storage containers and medical devices. In addition to the two units, the complex will consist of a central utility block and product handling area with associated support systems and facilities.

“This project is highly strategic for Pembina and our producer customers in the Western Canadian Sedimentary Basin,” said Mick Dilger, president and chief executive officer, Pembina. “It offers a new demand source for domestically produced propane and supports ongoing development of Canada’s world-class hydrocarbon resources.”

Engineering on the project has begun, and construction is anticipated to begin in late 2020. Mechanical completion of the new PDH unit is planned for the second half of 2023.