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Pembina Gets Inter Pipeline PDH/PP Project as Part of Acquisition
June 04, 2021

As part of its arranged agreement to purchase Inter Pipeline for C$8.3 billion ($6.9 billion) in stock, Pembina will acquire the Heartland Petrochemical Complex (HPC) being built in Strathcona, Alberta. The $4 billion HPC project includes a Propane Dehydrogenation plant (PDH) and Polypropylene plant, which will convert Propane into 525,000 tonnes/yr of Polypropylene (PP) by early 2022.

The acquisition agreement between the two Canadian companies comes six months after Pembina and its 50-50 joint venture partner Kuwait Petroleum Corporation suspended work indefinitely on a $4.5 billion PDH plant and PP facility in Alberta due to risks associated with the COVID-19 pandemic. The facility, which would have been near Pembina's Redwater fractionation complex, would have processed 23,000 bpd of Propane to produce more than 550,000 tonnes of PP per year by mid-2023.

Pembina's acquisition of Inter Pipeline may support a similar project in the future, though. The company said in its acquisition announcement that by combining HPC with its own 60,000 bpd of Propane supply infrastructure in Fort Saskatchewan, it eliminates the long-term supply risk for HPC, improving the possibility of a second such facility.

By Brian Balboa for The Plastics Exchange.

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