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

Jacqueline Pearce and Jean-Pierre Antonio received the BC Historical Federation Best Article Award on Saturday for their story about translating haiku written in the Tashme internment camp.
Article chronicling haiku in Japanese internment camp near Hope wins award

Tashme Haiku Club’s work was preserved and recently translated, authors write

Chilliwack’s Jordyn Huitema, a member of the Canadian national women’s soccer squad.
Another scoreless draw for Chilliwack’s Jordyn Huitema and Canadian national women’s soccer squad

Canada played Brazil to a 0-0 tie days after doing the same in a friendly against the Czech Republic

FVRD surveyed public opinion on cannabis production and processing in the electoral areas. Odour and distance from residential areas were the top concerns. (Black Press file)
Cannabis production and processing rules being drafted by Fraser Valley Regional District

Data from public opinion survey will be used to guide cannabis-related land use

Robert Nelson, 35, died after being stabbed at a homeless camp in Abbotsford on April 7 of this year.
Mom pleads for information about son’s killing at Abbotsford homeless camp

Robert Nelson, 35, described as ‘man who stood for justice, honour, respect’

Police arrest the suspect in an attempted armed bank robbery on June 2 at the Scotiabank at Gladwin Road and South Fraser Way in Abbotsford. (Photo by Garry Amyot)
Abbotsford bank robbery suspect who was stopped by customers faces more charges

Neil Simpson now faces total of eight charges, up from the initial two

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

The BC Ferries website went down for a short while Monday morning following a provincial announcement that recreational travel between health authorities can resume Tuesday. (Black Press Media file photo)
BC Ferries’ website crashes in wake of provincial reopening announcement

Website back up now, recreational travel between health regions to resume as of Tuesday

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Highway notices like this come down effective June 14. Public health restrictions on non-essential travel and commercial operation have hit local businesses in every corner of B.C. (B.C. government)
Province-wide travel back on in B.C.’s COVID-19 restart plan

Gathering changes include up to 50 people for outdoor events

Calgary Stampeders’ Jerome Messam leaps over a tackle during second half CFL western semifinal football action in Calgary, Sunday, Nov. 15, 2015.THE CANADIAN PRESS/Jeff McIntosh
CFL football will be played this summer in Canada

Governors vote unanimously in favour to start the ‘21 campaign on Aug. 5

Most Read