The petrochemical complex is designed to convert locally sourced, low-cost propane into 525,000 tonnes of polypropylene per annum
Inter Pipeline has secured a C$408m ($325m) grant under the Alberta Petrochemicals Incentive Program (APIP) to support its Heartland Petrochemical Complex (HPC).
HPC is an integrated propane dehydrogenation (PDH) and polypropylene (PP) production facility, and is expected to be operational in early 2022.
APIP is an incentive programme launched by the Government of Alberta to attract investment into the development of petrochemical facilities in Alberta.
Inter Pipeline is a major petroleum transportation and natural gas liquids processing business, owning and operating energy infrastructure assets in Western Canada.
The company is building the Heartland complex, which will convert locally sourced, low-cost propane into 525,000 tonnes of polypropylene per annum.
Inter Pipeline president and chief executive officer Christian Bayle said: “The APIP grant recognizes the significant contribution HPC has and will continue to make to the Alberta economy.
“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 $3 billion or three quarters of the project construction spend will be invested directly into materials and services provided by Alberta businesses.”
Inter Pipeline said that more than 150 Alberta businesses have contributed to the construction of HPC till date.
In the four-year construction period, HPC is estimated to have created around 16,000 direct and indirect full-time jobs.
Once operational, the petrochemical complex is expected to create more than 1,000 direct and indirect full-time jobs.
The Heartland facility is expected to diversify and strengthen Inter Pipeline’s existing large-scale natural gas liquids processing business.
Bayle added: “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.”
In February, Brookfield Infrastructure Partners has offered to acquire full ownership of Inter Pipeline in a deal valued at CAD13.5bn ($10.65bn).