West Coast Olefins CEO Ken James on Victoria Harbour, Oct. 25, 2019. (Tom Fletcher/Black Press)

West Coast Olefins CEO Ken James on Victoria Harbour, Oct. 25, 2019. (Tom Fletcher/Black Press)

New B.C. petrochemical industry player in the making

West Coast Olefins wants to add value to natural gas liquids

As B.C. and Alberta’s natural gas industry reaches out to international markets through LNG exports from the North Coast, a related petrochemical business is aiming for the fast-growing Asia market.

Calgary-based West Coast Olefins Ltd. has applied to B.C.’s Environmental Assessment Office for an ethylene plant to operate on industrial land at Prince George. The $5.6 billion project would share the site with a partner to convert ethylene into polyethylene pellets for export to Asia. Its feedstock is natural gas liquids produced from the Montney shale that extends from northeast B.C. into northwest Alberta.

West Coast CEO Ken James says the site is the best production point in North America because of its access to a long-established gas pipeline that serves Metro Vancouver, a long frontage on the CN Rail line to the main export outlet, the Port of Prince Rupert, and shore access to the Fraser River. The operation needs up to 1,000 employees in a region where the forest industry is in a deep slump.

During a business trip to Victoria, James spoke with Black Press reporter Tom Fletcher about the project:

TF: What makes B.C.’s Northern Interior a good place for this project?

KJ: One of the primary drivers was I wanted an existing pipeline and not needing a new one. We’ve seen projects fail on needing a new pipeline, and we avoided that.

TF: Have there been other projects like this proposed?

KJ: There are none in Prince George, but there is an existing natural gas line that runs all the way down past Prince George to Vancouver. Nobody’s been taking the liquids out. You’ve got an existing line with liquids in it, and as the price of gas has gone down, the producers are focused on the liquid-rich gas, so the content is actually going up.

TF: That’s the Montney shale that extends from northeast B.C. into Alberta.

KJ: Yes. The Horn River shale [farther north] is dry gas, so nobody’s developing it. The Montney’s liquid-rich, so everybody’s developing that.

TF: Is this related to the LNG projects that we’re seeing come forward?

KJ: No, it’s using the existing gas line that’s been operational for 60 years. We’re not doing new production, we’re taking more value out of existing production.

TF: There’s a light oil refinery in Prince George. [Husky Energy recently sold the small low-sulphur diesel and gasoline producer to Tidewater Midstream for $215 million.] Is that related to your project? Do they compete with you?

KJ: We’re going to have about 20 per cent condensate that we’ll extract from the pipeline. We’ll be complementary. I’ve already met with them, and their CEO actually invested in my last company.

TF: What was your last company?

KJ: Nauticol Energy, a methanol project in Grand Prairie, Alberta that’s in development right now. It has some financial support from the Alberta government.

RELATED: $5.6B petrochemical, plastics plant proposed at Prince George

RELATED: Ottawa pledges $153M investment in Port of Prince Rupert

TF: With West Coast Olefins, there’s an issue with Enbridge, which runs the pipeline you’re proposing to use. Can you explain that?

KJ: They’re proposing to do an equivalent straddle plant to take the liquids out at Chetwynd. They would use a 150 km pipeline and taking it back to Taylor, where they have liquids lines that would take it back to Fort Saskatchewan [site of Alberta’s new Sturgeon refinery]. That would kill our project.

TF: What would West Coast Olefins produce?

KJ: We’re going to make ethane into ethylene. There is an opportunity to turn the propane to propylene as well. They’re made into polyethylene and polypropylene. We are going to have a third party that will take that step, in Prince George. The market’s going to be Asia, not the U.S., so would you rather have it in Prince George or Edmonton?

TF: You have acquired a 300-acre site?

KJ: Yes. It’s already industrial land, beside the B.C. Industrial Park. It’s fee-simple land, which makes it a lot less complex, rather than touching Crown land. We’ve got about a mile of frontage along the CN main line, and our property goes right up to the Fraser River. We have the Fraser, the rail, the road, a population of 80,000 people, and the Enbridge pipeline runs 10 km from our site.

TF: And they have a competing project.

KJ: Yes. Their application is also in the B.C. Environmental Assessment Office. The Enbridge pipeline is a nationally regulated pipeline, because it crosses the border into Washington, Oregon etc. When an owner of a nationally regulated pipeline proposes a project on that, they automatically force their project into the national regulatory process, so their application is in the wrong regulatory body. That wouldn’t apply to us, because we don’t own the pipeline.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Just Posted

Marine biologist Rick Harbo pulls a lid from the Ladysmith harbour, which he uses to monitor the presence of native and non-native species in the Ladysmith harbour. (Cole Schisler photo)
Unidentified sponge may be the latest marine species invading Ladysmith Harbour

Marine biologist finding dozens of alien species in warm-water harbour, none of them threatening

More and more graffiti has appeared in Ladysmith’s downtown core during the pandemic. (Cole Schisler photo)
Council creates rebate program to encourage graffiti clean up

Property owners can receive up to $50 to help fund graffiti removal

Rick Ruppenthal of Saltair will host a 12-hour talk-a-thon Friday, June 18 over Facebook live. (Photo submitted)
Talk-a-thon to focus on men’s mental health issues

Saltair man spearheading a campaign to generate more conversation during fundraiser

(File photo)
Poverty reduction survey identifies 10 poverty themes

Poverty reduction plan will be finalized in July 2021

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

Two ambulances and a medevac helicopter are on scene at Taylor River Flats rest area on Highway 4 due to a serious motor vehicle incident. (PHOTO COURTESY MAGGIE BROWN)
Highway 4 reopens between Port Alberni and Tofino

Multi-vehicle accident temporarily closed highway in both directions

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

Most Read