Inter Pipeline has announced the sale of the Heartland Petrochemical Complex’s Central Utility Block (CUB) to Fengate Capital Management, The sale will recover all of Inter Pipeline’s development capital and Fengate will assume responsibility for funding the CUB capital cost, currently estimated at $600m.
Fengate has also entered into long-term agreements to supply core utilities to Inter Pipeline’s Heartland Petrochemical Complex in exchange for structured capital and operating recovery fee payments from Inter Pipeline.
The CUB is a 102 MW natural gas powered cogeneration facility capable of supplying Inter Pipeline with electricity, steam and other key utilities for its 100% owned Heartland Complex near Edmonton, Alberta. The $3.5bn complex, which excludes the CUB capital cost, consists of integrated propane dehydrogenation and polypropylene plants. The complex will convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene pellets. Construction of the Heartland Complex is in progress with completion scheduled for late 2021.
For more information, visit: www.interpipeline.com
1st October 2018
