Inter Pipeline to build propane dehydrogenation, polypropylene complex

Inter Pipeline Ltd.’s board of directors has authorized the construction of an integrated propane dehydrogenation (PDH) and polypropylene (PP) plant.

The facilities, which will be collectively referred to as the Heartland Petrochemical Complex, will be located in Strathcona County, Alberta, Canada, near Inter Pipeline’s Redwater Olefinic Fractionator. The estimated cost to develop the facility is $3.5 billion and construction on the complex will continue in 2018 with an estimated completion in 2021.

“We’re excited to see this new investment that will create thousands of good-paying, value-added jobs and help diversify Alberta’s economy,” says Margaret McCuaig-Boyd, Alberta’s minister of energy. “Moving ahead with this world-class facility shows our Petrochemicals Diversification Program is working to attract new investment and make lives better for Albertans by creating new economic opportunities.”

The PDH facility will convert about 22,000 barrels of propane per day into 525,000 tons of polymer grade propylene per year. According to the company, propane feedstock for the PDH plant will be sourced from the Redwater Olefinic Fractionator as well as other third-party fractionators in the region. The PP facility will use propylene from the PDH plant to produce 525,000 tons of PP per year.

Other construction activities associated with the project include storage facilities and rail-loading assets to facilitate the transport of PP pellets to various North American markets.

“The investment represents the largest organic growth project in our history, and a key part of Inter Pipeline’s strategy,” says Christian Bayle, Inter Pipeline’s president and CEO. “The Heartland Complex is highly complementary to our existing natural gas liquid processing activities and is structured to provide a new source of material long-term cash flow.”