CALGARY, Alberta, March 18 (Reuters) - Williams Companies Inc will spend C$900 million ($881 million)to build a plant in Alberta that will produce raw plastics from the byproducts of oil sands processing, the U.S. pipeline and gas-processing company said on Monday.
Williams said it will build a propane dehydration facility at its Redwater complex near Edmonton that will allow it to vastly increase production of polymer-grade propylene, an ingredient of plastics.
The plant will have a capacity of 1.1 billion pounds (500 kilotonnes) p er year, with the capability to double that in the future, it said. If approved by regulators, the facility will go into service in 2016.
Williams said it plans to use propane recovered from its oil sands offgas processing operations as feedstock, along with some propane purchased locally. It will transport the propylene to the U.S. Gulf Coast to be sold to petrochemical producers.
The company's Redwater, Alberta, complex includes fractionation, storage and distribution facilities. It is currently being expanded to produce about 5 million barrels of propane and 280 million pounds of polymer-grade propylene annually, as well as other natural gas liquids.