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Inter Pipeline granted royalty credits under Alberta’s Petrochemical Diversity Programme

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Hydrocarbon Engineering,


Inter Pipeline Ltd will receive CAN$200 million in royalty credits from the Government of Alberta’s Petrochemical Diversification Programme, the maximum amount any one project is eligible to receive under this programme. Credits have been awarded in support of Inter Pipeline’s proposed construction of a CAN$1.85 billion propane dehydrogenation (PDH) facility near Fort Saskatchewan, Alberta.

As part of its recent acquisition of the Williams Companies Inc.'s and Williams Partners L.P.'s Canadian natural gas liquids midstream businesses, Inter Pipeline assumed responsibility for the potential construction of a world scale PDH facility. This facility will convert low cost, locally sourced propane into more valuable polymer grade propylene, which is primarily used to create a variety of plastics, fibres and chemicals.

“We are pleased to have been awarded meaningful incentives to assist with the advancement of this important project,” said Christian Bayle, Inter Pipeline's President and Chief Executive Officer. “The Petrochemical Diversification Programme will help provide long term economic benefits to Alberta by stimulating new investment and creating high quality employment opportunities.”

Inter Pipeline is also assessing the commercial viability of constructing an additional CAN$1.3 billion processing facility that converts propylene into polypropylene. Subject to securing appropriate long term, fee-based sales contracts for the production, Inter Pipeline anticipates making final investment decisions on the PDH and polypropylene facilities by mid-2017. Both plants are expected to be operational by mid-2021.

The royalty credits will be available to Inter Pipeline once the proposed PDH facility is in operation. The credits can then be sold to oil or natural gas producers, which use the credits to reduce their royalty payments.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/06122016/inter-pipeline-granted-royalty-credits-under-albertas-petrochemical-diversity-programme/

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