Sturgeon County announces new petrochemical plant

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A major petrochemical project could be coming to Sturgeon County.

Canada Kuwait Petrochemical Corporation is proposing to build a petrochemical complex, which has an estimated capital cost between $3.8 and $4.2 billion.

Alanna Hnatiw, mayor of Sturgeon County, says the project is an exciting venture for the county.

“I think this is a fantastic and exciting opportunity,” she says. “It’s another example of why regional collaboration works so well.”

She says the project could attract other similar companies to the county.

“(It’s) increasing the profile on a global scale of what Sturgeon County has to offer.”

Tyler Westover, manager of economic development in Sturgeon County, says the new complex will strengthen the county’s economy.

“There are wonderful employment prospects as we move forward. I think there are opportunities for businesses here as well,” he said. “Likely we would see for a project of this magnitude, like anywhere else, some substantial tax benefits that would come through.”

Westover says engineers are currently in the designing phase, which will continue into the new year. He says it’s difficult to determine when construction will begin on the complex, which will be located near Pembina’s RFS facility in Sturgeon County.

In December Canada Kuwait Petrochemical Corporation received a conditional royalty credit of $300 million from Alberta Energy to go towards the project. Sturgeon County also signed a Municipal Improvement Agreement with the company.

The facility will develop a fully integrated propane dehydrogenation and polypropylene production facility, which will create recyclable plastic pellets commonly used in making Tupperware containers and lids for coffee cups.

It will also develop associated infrastructure, such as pipeline connectivity, utilities and rail.

Karen Shaw, Sturgeon County councillor for district 6 where the facility will be located, says she’s glad the project is coming to the county.

“It will provide jobs and growth to the community,” she says. “It was administration who really got the ball rolling, because (the petrochemical company) were planning on going to Fort Saskatchewan. So kudos to administration and our CAO who did the hard work to convince them to come to the Sturgeon side.”

Canada Kuwait Petrochemical Corporation is a 50/50 joint company between Pembina Pipeline Corporation and Petrochemical Industries Company K.S.C. of Kuwait.

The project is still in its initial stages, with a final investment decision from each partner still on the table. It also requires regulatory and environmental approvals.

According to a press release, Pembina has had a long history with Alberta’s Industrial Heartland.

The RFS facility celebrated its 40th anniversary this year by opening its third natural gas liquids fractionator in July. The facility is now Canada’s largest fractionation facility.

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Dayla Lahring

Dayla Lahring joined the St. Albert Gazette in 2017. She writes about business, health, general news and features. She also contributes photographs.