US-based energy infrastructure company, Williams, has announced that it will build a propane dehydrogenation (PDH) facility in Alberta, Canada to increase its production of polymer-grade propylene.

The PDH facility is expected to have 1billion pounds of annual capacity and increase the production of polymer-grade propylene in Canada.

Williams is estimating capital expenditure of about 4600m to $800m on the facility which will be funded with international cash on hand.

The PDH facility will use the propane recovered from the company’s Redwater facility and convert it into propylene which will then be transported to the US Gulf Coast.

Williams Energy Canada president David Chappell said building a PDH facility would further build on the value and expertise that the company has built in Canada and serve the booming North American petrochemical market.

"Because of our existing facilities, we would be able to capture value from PDH production byproducts – butane/butylene and ethane/ethylene – that another PDH operator would have to burn," Chappell added.

The company will sell the associated hydrogen by-product in the local market of Alberta.