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Williams Expanding Alberta Off-Gas Facilities
Williams is investing C$311 million to expand two Alberta off-gas facilities that would support a new long-term agreement to produce up to 17,000 b/d of ethane and ethylene for Canadian petrochemical heavyweight NOVA Chemicals Corp.
The facility expansions, scheduled to begin operations in early 2013, would allow Williams to process off-gas from Alberta’s massive oilsands operations in support of NOVA’s operations. Williams agreed to modify its oilsands off-gas extraction plant near Fort McMurray, and construct a de-ethanizer at its Redwater natural gas liquids (NGL)/olefins fractionation facility near Edmonton.
“These expansions will add incremental ethane supplies in Alberta, which are high-demand products for the petrochemical industry in Canada,” said Williams’ Rory Miller, president of the midstream business. “It’s a significant growth opportunity for our Canadian midstream business, as we’re uniquely positioned as the only company with off-gas experience and facilities in the region.
“The new operations will also further reduce greenhouse gas and sulfur dioxide [SO2] emissions from the oilsands operations.”
Already under way is construction of a 261-mile, 12-inch diameter NGL pipeline from the Fort McMurray extraction facility to the Redwater fractionator (see NGI, May 4, 2009). The pipeline, expected to be in service in April 2012, is to have a capacity of 43,000 b/d of off-gas NGL/olefins. Additional pump stations would enable Williams eventually to increase capacity on the pipeline to 125,000 b/d.
The Tulsa-based company now processes off-gas from oilsands for Canada’s Suncor Energy, which also has a Fort McMurray facility. The NGLs and olefins are processed for transport via the Suncor Oil Sands Pipe Line. Williams’ proposed 12-inch diameter pipeline, estimated to cost US$283 million, is designed to provide additional capacity for Suncor liquids, as well as NGL capacity for other area producers’ off-gas.
The new upgrades at Fort McMurray also would allow Williams to include ethane and ethylene in the NGL/olefins mixture now extracted from the off-gas and delivered to Redwater for fractionation.
The new de-ethanizer at Redwater then would enable Williams initially to produce about 10,000 b/d of an ethane/ethylene mix. The Redwater facility currently produces around 14,000 b/d of a heavier NGL/olefins mixture, which includes propane, propylene, butane, butylenes and condensate.
Under the terms of the agreement Williams would deliver the mix produced at Redwater into the Joffre Feedstock Pipeline (JFP). NOVA Chemicals is delivering the product via JFP into its Joffre facilities.
The Alberta government recently modified the Incremental Ethane Extraction Program that gives industry new incentives to extract ethane from the oilsands for the petrochemical industry.
“I’m pleased to see that Williams is the first of what I believe will be many companies to benefit from the recent changes to our ethane policy,” said Alberta Energy Minister Ron Liepert. “The value-added industry in the province is important, allowing Albertans to get the most out of the province’s resources — whether in investment capital, exported products or jobs.”
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