Canada’s Inter Pipeline advances on PDH/PP project

Author: Stefan Baumgarten


TORONTO (ICIS)--Canadian energy infrastructure and natural gas liquids (NGL) firm Inter Pipeline is making good progress on its Canadian dollar (C$) 3.5bn ($2.7bn) propane dehydrogenation/polypropylene (PDH/PP) project, currently under construction in Alberta province.

“Construction on the ‘Heartland Petrochemical Complex’ continues to go very well and we are achieving important milestones on time and within budget," CEO Christian Bayle said in a webcast update on Friday.

In the second quarter of 2019, C$287.1m was invested in the complex, with the total capital incurred on the project at about C$1.6bn, he said.

All heavy-lift vessels for the PDH facility are now in place. By the end of Q2 more than 1,200 construction personnel were on site, with construction activities continuing to progress according to cost and schedule targets.

“In total, about 55% of the total project costs have been secured under completed time and materials work, firm purchase orders and lump sum construction contracts,” officials added.

The company may divest its European bulk liquids storage business, with part of the proceeds going towards funding the PDH/PP petrochemicals project, Bayle confirmed.

In March, Inter Pipeline officials said that they were considering adding acrylics and other downstream production to the PDH/PP complex.

($1 = C$1.32)


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