Calgary-based Inter Pipeline has plans to build a $600 million petrochemical project near Edmonton, Alberta, Kallanish Energy reports.
The province of Alberta has agreed to provide $70 million in royalty credits under Premier Rachel Notley’s Made-in-Alberta energy diversification strategy.
The plant would convert propane from natural gas into acrylic acid and propylene derivatives that are used in numerous consumer products, such as adhesives, coatings, diapers, floor polishes, and paints.
Construction is expected to begin in 2021, pending a final investment decision.
The facility would convert 60,000 tons per year of propylene and produce 80,000 tons per year of propylene derivatives, including acrylic acid and propylene derivatives.
The project would create 600 construction jobs and 50 permanent jobs.
The company has broken ground for its separate $3.5 billion propane-to-plastics facility near Edmonton. A final investment decision of the Heartland Petrochemical Complex was made in late 2017.
To date, Alberta has supported four petrochemical projects with a total price tag of $12.6 billion as it deals with pipeline bottlenecks that make it difficult to export crude oil and natural gas. It’s attempting to get added value from energy-related projects in the province.
This post appeared first on Kallanish Energy News.