Heartland Petrochemical Complex Print Page
Building Canada's first integrated PDH and PP complex
The Heartland Petrochemical Complex will be designed to convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene, a high value, easy to transport plastic used in the manufacturing of a wide range of finished products.Consisting of a propane dehydrogenation (PDH) and a polypropylene (PP) facility, the Heartland Petrochemical Complex will cost approximately $3.5 billion and will be located in Strathcona county, Alberta near Inter Pipeline’s existing Redwater Olefinic Fractionator.
Construction of the Heartland Petrochemical Complex is in progress with completion scheduled for late 2021. This webpage will provide regular updates on this exciting project.
“The Heartland Petrochemical Complex represents the largest organic growth project in our history, and a key part of our growth strategy"
~ Christian Bayle, Inter Pipeline President and CEO
For further information view our:
- Investor slide presentation
- Heartland Petrochemical Complex fact sheet
- Heartland Petrochemical Complex website
We reached a key milestone for the Heartland Petrochemical project, with the support of Inter Pipeline's contractor Mammoet, our Polypropylene Splitter began its journey from the Edmonton-based Dacro Industries Inc. fabrication shop to the Heartland construction site. The Splitter was completely fabricated at Dacro Industries in Edmonton, which supports the local economy and utilizes Alberta's abundance of highly skilled labour and expertise. The “Propylene-Propane Splitter," is a distillation column that took most of 2018 to fabricate, and was completed on schedule and on budget.
- Weight: Over 800 tonnes – approximately 5 times the weight of the statue of liberty (excluding foundation)
- Height: Over 97M tall - which is nearly as long as a CFL football field or approximately equivalent to the 1988 Olympic Ski Jump at Canada Olympic Park
- Fabrication: One year. The work was started and completed at Edmonton's Dacro Industries
- Material: The Splitter is primarily fabricated from carbon steel
Follow our Twitter page for daily updates and visuals of the move.
At the Heartland Petrochemical Complex, construction continues to progress on schedule. View our latest construction update here:
At the Heartland Petrochemical Complex, construction continues to progress on schedule. As of April, 2018, over $500 million has been invested on advancing this project. View April's construction update here:
Construction on our Heartland Petrochemical Complex will see more than 3,000 pilings in the ground this winter - some extending more than 20 metres into the ground.View our video of the first piling going into the ground:
How does propane become polypropylene?
Watch our animated video below to learn more about this fascinating process.
Project Highlights & Strategic Rationale
- 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
- Structured to generate high-quality, predictable cash flows and provides a footprint for future growth
- Materially diversifies and strengthens our existing large-scale NGL processing business
- The Heartland Petrochemical Complex is a transformational organic growth opportunity
- At $3.5 billion, it represents the single largest capital investment in Inter Pipeline’s history
What this means for Alberta
Today, producers send Canadian propane south of the border where it becomes polypropylene before being shipped back to us at a higher cost. The Heartland Petrochemical Complex will change this as it will be the first integrated propane dehydrogenation and polypropylene plant in Canada. The amount of direct and indirect jobs created for Canadians over the four-year construction period will top 13,000.
The Propane Dehydrogenation (PDH) Facility
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, is now 85 percent complete. Inter Pipeline has also completed early civil work at the site in preparation for facility construction activities in early 2018.
PDH Facility - Schedule of Major Activities
The Polypropylene (PP) Facility
The integrated PP facility 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 70 percent complete. Construction of this component of the complex is scheduled to begin in the second half of 2018.
PP Facility - Schedule of Major Activities
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.
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