Nearly 80% of Inter Pipeline’s planned 2020 capital program will be directed toward construction of the Heartland Petrochemical Complex, the company said on Thursday.
The facility, under construction near Fort Saskatchewan, will be Canada’s first integrated propane dehydrogenation (PDH) and polypropylene (PP) plant, converting Alberta propane into pellets for plastic products.
It carries a $3.5-billion capital cost, of which Inter Pipeline has spent approximately $1.9 billion, as of the end of September 2019.
In 2020 the company said it will invest approximately $935 million is expected to be invested in the project, with a focus on advancing mechanical construction of the PP plant and completing the final stages of construction of the PDH facility.
Construction began in early 2018 and is scheduled for completion in late 2021.
Inter Pipeline announced $1.195 billion in capital spending for next year, which includes $80 million for sustaining capital, $45 million in its conventional oil pipelines business (primarily for the expansion of its Central Alberta pipeline system), $30 million for oilsands transportation (focused on improving operating efficiencies), $40 million on European bulk liquids storage (if the sales process underway is unsuccessful), and $20 million for corporate activities.