By December 18, 2017 4 Comments Read More →

Inter Pipeline’s polypropylene plant near Fort Saskatchewan gets final investment decision

Rendering of the future Heartland Complex. Photo courtesy Inter Pipeline.

Project will create 2,300 full-time construction jobs, 180 full-time operational positions

Calgary-based Inter Pipeline says cheap propane feedstock and low electricity rates combined with the Alberta government’s petrochemical $200 million of subsidies will allow its polypropylene plant in the Industrial Heartland near Fort Saskatchewan to be competitive in the North American market when the facility opens in 2021.

The final investment decision by Calgary-based Inter Pipeline will see two new facilities built in the Industrial Heartland near Fort Saskatchewan that will process propane into value-added plastics products.

Christian Bayle, president and CEO, Inter Pipeline.

“Alberta is an ideal location to construct a world-scale, propane-based petrochemical operation due, in part, to the meaningful incentives provided by the Petrochemicals Diversification Program,” Christian Bayle, president and CEO, Inter Pipeline.

“Driven by attractive feedstock and utility costs, Inter Pipeline’s Heartland Complex is expected to be one of the lowest-cost polypropylene producers in North America.”

Construction of the new propane dehydrogenation (PDH) facility and polypropylene facility will begin in spring 2018, with operations starting by the end of 2021.

The complex will process about 22,000 barrels per day of Alberta propane into propylene, which will then be processed into the more valuable polypropylene that is used around the world to manufacture a variety of plastics products, including packaging for consumer products, reusable containers and automotive parts.

Preliminary work at the project site is underway, as is detailed engineering and design work.

Inter Pipeline was approved to receive royalty credits under Alberta’s Petrochemicals Diversification Program, which was created as part of the Alberta Jobs Plan to encourage companies to invest in the development of new petrochemicals facilities in the province.

“We had roughly twice the interest we expected in this program when it first launched, showing that companies around the world see Alberta as a great place to do business,” said Deron Bilous, minister of economic development and trade.

“Seeing this project proceed is just another step in our government’s plan to increase competitiveness, diversify the type of energy products we produce in Alberta and create lasting benefits for the modern Alberta economy.”

Inter Pipeline’s PDH project was one of two proposed petrochemical projects selected in December 2016, through a competitive application process, to receive up to $200 million in royalty credits.

Another project, Canada Kuwait Petrochemical Corporation’s (CKPC) integrated PDH and polypropylene facilities, was approved to receive up to $300 million in royalty credits. CKPC recently began the process to have front-end engineering design work done for its project and is expected to make a final investment decision in late 2018.

Under the PDP, projects will receive royalty credits only after the facility has been constructed and is in operation.

“We’re excited to see this new investment that will create thousands of good-paying, value-added jobs and help diversify Alberta’s economy,” said Alberta Energy Minister Margaret McCuaig-Boyd.

“Moving ahead with this world-class facility shows our Petrochemicals Diversification Program is working to attract new investment and make life better for Albertans by creating new economic opportunities.”

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4 Comments on "Inter Pipeline’s polypropylene plant near Fort Saskatchewan gets final investment decision"

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  1. If the planet’s future is actually on the line, we all have to think a little more like a Utility Commissioner to make sure we as North Americans are the makers of efficient energy, reducers of emissions, practitioners of energy efficiency and believers of clean economic development.

  2. Tina Bursey says:

    What great news for Fort Saskatchewan and the province of Alberta!

  3. Michael Winchester says:

    It would be nice to work at that site

  4. Rob B says:

    Hopefully the infrastructure will be upgraded first.The current roads and highways are congested and very dangerous to travel.There needs to be a plan in place for this like say bus scheduling,Shift scheduling etc to take the stress off the road system.If you look at what is going on in this area here now, there was no planning done it’s a free for all on the local highways now.Just look what NWR did cancel the buses Jan 1/18,now it’s total mayhem on the high ways due to there lack of planning or thinking of the repercussions of there decisions.Saftey first and foremost, this go’s for our high ways too.

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