Inter Pipeline to build $3.5bn petrochemical complex in Canada


Inter Pipeline is to proceed with construction of a $3.5bn integrated propane dehydrogenation (PDH) and polypropylene (PP) plant in north Edmonton, Canada. 

Collectively known as the Heartland Petrochemical Complex, the facilities will be located in Strathcona County, Alberta, near the company’s Redwater Olefinic Fractionator.

Inter Pipeline president and CEO Christian Bayle said: “Alberta is an ideal location to construct a world-scale propane- based petrochemical operation.

“Driven by attractive feedstock and utility costs, the Heartland Complex is expected to be one of the lowest cost polypropylene producers in North America. This dynamic should result in attractive profit margins given the premium pricing this plastic currently receives in the North American market.”

The complex will convert propane into polypropylene, a plastic used in the manufacturing of products such as automobile parts, containers, and Canadian bank notes.

"This should result in attractive profit margins given the premium pricing this plastic currently receives in the North American market."

The PDH plant will be designed to convert approximately 22,000bpd of propane into 525,000t of polypropylene per annum.

Propane feedstock for this plant will be sourced from the Redwater Olefinic Fractionator, alongside a number of third-party fractionators in the region. 

In 2013, detailed engineering for the plant was awarded to Fluor and is now about 85% complete. Inter Pipeline has also finished early civil work at the site in preparation for facility construction activities.

Construction of the complex will continue in early 2018, while the plant is scheduled to become operational in late-2021.

Other construction works related with the project include product storage facilities and rail loading assets to facilitate the transport of polypropylene pellets to various North American markets.