Pembina relocates LPG project to Prince Rupert

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which would be built to send propane to Asia and other overseas markets, could be more near-term developments as the global LPG market is set to grow to US$147 billion by 2024, according to San Francisco’s Grand View Research.

Pembina senior vice-president, natural gas liquids and natural gas facilities Stuart Taylor said the company would work on engineering and consulting with local communities over the next six to 12 months before bringing a proposal to its board. He said the terminal could be built within two years. and reuse the land. The pulp mill had also been a major employer in the city, whose population declined after it closed.

“We are looking forward to a new beginning for our community as we work toward putting Watson Island back on the tax roll,” Prince Rupert Mayor Lee Brain said in a press release. “We are happy to have the opportunity to potentially partner with (Pembina) to create new local jobs and revenue that will significantly improve the quality of life for everyone in Prince Rupert.”

Calgary-based AltaGas Ltd. announced in January that it would build the West Coast’s first LPG export terminal nearby, on Ridley Island, at a cost of between $450 million to $500 million to send Canadian propane to Asia.

Propane production has increased rapidly in Canada and the United States in recent years as natural gas producers have tapped into more shale formations.

Propane is a byproduct of shale natural gas production and domestic producers have been looking for new markets for it since Canadian propane has lost market share to growing U.S. supplies in key petrochemical markets.

Taylor said gas producers were looking for new export markets — including in Mexico, South America and Asia — to send their propane. He also said Pembina continues working on a major petrochemical plant in Alberta that would process propane.