The Covid-19 virus has stalled a C$4.5 billion ($3.4 billion) Alberta petrochemical project and its forecast demand for 23,000 b/d of natural gas liquids, according to sponsor Pembina Pipeline Corp.


Pembina, in issuing its 2021 capital budget on Monday, said it has shelved the proposed project with Kuwait partner Petrochemical Industries Co. until further notice. No replacement date was set for the original 2023 target for starting production.

“Significant risks arising from the ongoing Covid-19 pandemic, most notably with respect to project costs, require the joint venture to suspend execution of the project indefinitely,” said Pembina management.

The Calgary firm also said the year-end 2020 financial statement is going to show a material impairment for the postponed...