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Turning propane into plastics and creating jobs in Alberta

Turning propane into plastics and creating jobs in Alberta


A $4.5-billion project, a partnership between Pembina Pipeline Corporation and Petrochemical Industries Company of Kuwait, will create jobs in Alberta by turning propane into plastic.

The equally owned joint venture, Canada Kuwait Petrochemical Corporation (CKPC), will build a new dehydrogenation plant and polypropylene upgrading facility northeast of Edmonton. It will produce plastic pellets that can be used in recyclable products such as cellphone cases, car seats, medical devices and even Canadian currency.

The project is estimated to create up to 3,000 jobs during the construction phase and 200 permanent jobs once the plant is in full production.

Innovation is bringing new technologies to Canada and creating jobs, which really touch on Pembina’s strategy to develop new local markets for Western Canada’s resources

Kevin Jagger, Pembina’s Vice President of Petrochemicals

Pembina is pursuing a dramatic strategy shift to expand its global reach and extend its value chain. Part of that strategy was to find a partner for a joint venture that would help Pembina to produce and export higher value-added products.

CKPC is an example of foreign direct investment in Canada bringing together the right partners to turn a shared vision into an economic reality. This was made possible by Alberta’s innovation, the Kuwaiti principals’ expertise and a pivotal supporting role by the Government of Canada.

Pembina had its first meeting on the project with Global Affairs Canada four years ago. Less than two years later, the dream of a joint venture became a reality with the help of the Canadian ambassador to Kuwait.

“Global Affairs Canada has been an ongoing advocate for us,” Jagger says. “I think the opportunity is out there for Canadian businesses to leverage their services. I just don’t think everyone takes advantage of it.”

In 2019, Canada marked a five-year milestone in its foreign investment promotion and protection agreement with Kuwait. The agreement has supported economic prosperity and job creation in both countries and provides further opportunities to build on investment and trade ties.

Canada’s trade diversification strategy, seen at work in new trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, opens new markets for Canadian businesses.

It increases our competitive advantage and helps level the playing field

Kevin Jagger, Pembina’s Vice President of Petrochemicals
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