Inter Pipeline announced the construction of a world-scale integrated propane dehydrogenation (PDH) and polypropylene (PP) plant. The facilities, collectively referred to as the Heartland Petrochemical Complex, are estimated to cost $ 3.5 billion in aggregate and will be located in Strathcona County, Alberta near Inter Pipeline’s Redwater Olefinic Fractionator.
Calgary/Canada — The Heartland Petrochemical Complex will be designed to convert locally sourced propane into 525,000 tonnes per year of polypropylene. Construction of the complex will continue in early 2018 with completion scheduled for late 2021.
Driven by attractive feedstock and utility costs, the Heartland Complex is expected to be one of the lowest cost polypropylene producers in North America, the company claims.
This $ 3.5 billion project represents the single largest capital investment in Inter Pipeline’s history. Upon completion, the project is estimated to generate approximately $ 450 million to $ 500 million of long-term annual average EBITDA and be accretive to future funds from operations per share
According to the company, facility design is well advanced with approximately $ 400 million invested to date in engineering, procurement and early civil works.
The Heartland Complex
The PDH facility will be designed to convert approximately 22,000 barrels per day of propane into 525,000 tonnes per year of polymer grade propylene. Propane feedstock for the PDH plant will be sourced from Inter Pipeline’s Redwater Olefinic Fractionator as well as several other third party fractionators in the region.
Detailed engineering for the plant was awarded to Fluor Corporation in 2013 and is now approximately 85 % complete. The Canadian company has also completed early civil work at the site in preparation for facility construction activities in early 2018.
The integrated PP plant will utilize propylene from the PDH plant to produce 525,000 tonnes of polypropylene per year. Linde Engineering was awarded the front end engineering design contract for this facility in 2017, and work is currently approximately 70 % complete. Construction of this component of the complex is scheduled to begin in the second half of 2018.
Other construction activities associated with the project include product storage facilities and rail loading assets to facilitate the transport of polypropylene pellets to various North American markets.