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Inter Pipeline awarded US$408 million to develop petrochemical complex

Published by , Editorial Assistant
Hydrocarbon Engineering,

Inter Pipeline Ltd. has announced that it will receive US$408 million under the Alberta Petrochemicals Incentive Programme (APIP). The grant has been awarded in support of Inter Pipeline’s Heartland petrochemical complex (HPC), an integrated propane dehydrogenation (PDH) and polypropylene production facility, which will be operational in early 2022.

“The APIP grant recognises the significant contribution HPC has and will continue to make to the Alberta economy,” stated Christian Bayle, Inter Pipeline's President and Chief Executive Officer. “HPC's construction has created thousands of well-paid technical, manufacturing and construction jobs over its multi-year build and has been a symbol of hope during difficult economic times for the Province. In total, we expect that roughly US$3 billion or three quarters of the project construction spend will be invested directly into materials and services provided by Alberta businesses.

"Furthermore, we expect HPC to generate hundreds of permanent high-quality full-time jobs and substantial ongoing tax revenue for government. We appreciate the Government of Alberta's support of HPC, and we believe it sends a clear message to the international investment community — future large-scale petrochemical investments are welcome in Alberta.”

APIP is an incentive programme introduced by the Government of Alberta to attract investment into the development of petrochemical facilities in Alberta. The programme is aimed at taking advantage of the growing global petrochemical sector, utilising Alberta's abundant natural gas reserves to diversify its economy and creating a competitive, investor-friendly business environment.

HPC will convert locally sourced, low-cost propane into 525 000 tpy of polypropylene, a high value, easily transported and recycled, multi-use plastic used in the manufacturing of an extensive range of finished products such as packaging, textiles, automobile components, healthcare products and medical supplies.

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