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Released December 19, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The Board of Inter Pipeline (TSX:IPL) (Calgary, Alberta) has approved the construction of Canada's first integrated propane dehydrogenation (PDH) and polypropylene production plant. The facility will be constructed in Alberta and will be known as the Heartland Petrochemical Complex.

The plant will convert approximately 22,000 barrels per day of propane into 525,000 metric tons per year of propylene. Feedstock will be sourced from Inter Pipeline's nearby Redwater olefinic fractionator and other third-party fractionators in the region. Linde Engineering was awarded the front-end engineering and designing contract, which is approximately 70% complete, according to an Inter Pipeline press release.

In the press release, Inter Pipeline Chief Executive Officer Christian Bayle said, "Driven by attractive feedstock and utility costs, the Heartland Complex is expected to be one of the lowest-cost polypropylene producers in North America. This dynamic should result in attractive profit margins given the premium pricing this plastic currently receives in the North American market."

Construction is planned to kick off next year, and the plant is expected to be operational in late 2021. For more information, see Industrial Info's project reports on the PDH and polypropylene units.

With an abundance of low-cost, easily produced natural gas, PDH and polypropylene projects are becoming big business in North America. Also in Alberta, Pembina Pipeline Corporation (NYSE:PBA) (Calgary) is in the planning stages for a PDH and polypropylene plant. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is performing design engineering work on the project, which could begin construction in 2019. The project could produce 550,000 metric tons per year of polypropylene from propane sourced from Pembina's Redwater fractionator and other regional facilities. For more information, see Industrial Info's project report and December 6, 2017, article - Jacobs Engineering Snags FEED Contract for Canada PDH/PP Project.

In Texas, Braskem America Incorporated (Philadelphia, Pennsylvania) is developing a polypropylene unit at its facility in La Porte. The facility will produce 992 million pounds of polypropylene a year. Construction is set to be completed in early 2020. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
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