Integrated natural gas firm, Williams proclaimed that it has inked a long-term deal to manufacture about 17,000 bpd of ethylene and ethane for NOVA Chemicals based in Alberta, Canada.
To endorse the new deal, Williams plans to make an investment of CA$311 million to increase the production capacities of its two major facilities in Alberta. The capacity expansions are anticipated to commence production in the Q1 of 2013. The facilities will use the Alberta oil sands’ off-gas to generate the required quantity of ethylene and ethane.
According to the expansion plans, Williams will alter and upgrade its two Alberta facilities as well as its oil sands off-gas extraction facility located close to Fort McMurray, Alberta. The company will build a de-ethanizer at its Redwater olefins/ natural gas liquids (NGL) fractionation plant close to Edmonton, Alberta.
The Fort McMurray facility upgrade will enable Williams to add ethylene and ethane to the olefins/NGL mixture obtained from the oil sands off-gas. The resultant product will be delivered to Redwater facility for fractionation.
Initially, Williams will produce about 10,000 bpd of an ethylene/ethane blend using the new de-ethanizer at Redwater. The company is currently producing nearly 14,000 bpd of olefins/NGL mixture, which comprises condensate, butylenes, butane, propylene and propane.
As per the deal, Williams will supply the ethylene/ethane blend manufactured at Redwater facility via the Joffre Feedstock Pipeline. NOVA Chemicals will supply the mix to its Joffre facilities through the Joffre Feedstock Pipeline.
Source: http://www.williams.com