Heartland Petrochemical ComplexPrint 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. Construction of the complex will continue in early 2018 with completion scheduled for late 2021. 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 will continue in early 2018 with completion scheduled for late 2021. This webpage will provide regular updates on the progress of 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 news release and our investor slide presentation available here. 

How does propane become polypropylene?

Watch our animated video below to learn more about this fascinating process.

Creating Value - Heartland Petrochemical Complex

 

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

Project Highlights

  • 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
  • Facility design is well-advanced with approximately $400 million invested to date in engineering, procurement and early civil works

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

3D Rendering - Heartland Petrochemical ComplexThe 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

PDH Facility - Schedule of Major Activities 

The Polypropylene (PP) Facility

3D Rendering - Heartland Petrochemical Complex

 

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 

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.