Proposed propane processing facilities one step closer to reality

December 5, 2016

Proposed propane processing facilities one step closer  to reality

Two regional companies were today announced as the first recipients of a provincial petrochemical diversification funding program. The $500 million awarded through royalty credits will support two planned processing facilities in Alberta’s Industrial Heartland.

“Congratulations to Inter Pipeline and Pembina Pipeline Corporation on their winning bids,” says Strathcona County Mayor Roxanne Carr. “Strathcona County is pleased your projects are a step closer to reality. These propane processing facilities will substantially benefit our industry sector and municipalities in the region, contributing to economic diversification in the region, and skilled, sustainable jobs across the province.”

“The County applauds the province for its support of value-added processing in one of the world’s most attractive locations for petrochemical investments,” says Mayor Carr. “And we thank Alberta’s Industrial Heartland for its continued, excellent work with government and industry to ensuring the region continues to be Canada’s energy engine, a value added economic driver for Alberta.”

Up to 4,200 new jobs are anticipated to be created during the construction of the new petrochemical facilities.

Inter Pipeline has been approved to receive royalty credits of up to $200 million for its propane dehydrogenation (PDH) facility in Strathcona County. Inter Pipeline is also assessing the commercial viability of constructing an additional $1.3 billion processing facility that converts propylene into polypropylene. It anticipates making final investment decisions on the PDH and polypropylene facilities by mid-2017. Both plants are expected to be operational by mid-2021. 

A joint venture between Pembina and Petrochemical Industries Company has been approved to receive royalty credits of up to $300 million for its planned facility in Sturgeon County.  Pembina’s construction is expected to start in 2019, with the facility operating in 2021.

Alberta Government media release


Set in the centre of Alberta’s energy and agricultural heartland, Strathcona County is a thriving, successful and vibrant community of almost 96,000 residents. Strathcona County is made up of the urban area of Sherwood Park and a large adjacent rural area of farms, acreages and smaller hamlets. It is home to 75 per cent of refining in Western Canada. With a focus on economic, governance, social, cultural and environmental sustainability, Strathcona County is committed to balancing the unique needs of its diverse community.


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Strathcona County Communications, 780-410-6595