$3.5-billion petrochemical project north of Edmonton

[fishtank]

http://www.cbc.ca/news/canada/calgar...lant-1.4455092

good news.. they are still spending in alberta

Calgary-based Inter Pipeline Ltd. says it has decided to go ahead with a $3.5-billion petrochemical project in an industrial area north of Edmonton.

The complex will convert propane into polypropylene, a plastic used in the manufacturing of products such as automobile parts, containers and Canadian bank notes.

The province picked Inter Pipeline's project a year ago to receive up to $200 million in royalty credits.
Pembina Pipeline, also headquartered in Calgary, is to receive $300 million in credits for a similar project in the same area if it decides to proceed.

The credits, to be paid out after the facilities are operating, can't be used directly by the petrochemical facilities, but they can be sold to oil or natural gas producers to reduce their provincial royalty payments.

Inter Pipeline says construction of the integrated propane dehydrogenation and polypropylene plant is the most expensive project it has ever built.

Construction is to be completed in late 2021.

[Newview01]

Probably a result of Kenney's landslide win. They see a favorable trend for business coming up.

[79ford]

Propane is soo cheap and glutted out in alberta you would be crazy not to build a pdh facility.. This is really good news for construction trades and another great places for continued operations personel to work plus all the auxillaries needed to run the place. I think the will run a 300 meg cogen unit too or something which will probably pound some new power into the grid at the same time (not that we need more power in a power glut but itll be good for the end users price point)


What most people dont realize is politics has nothig to do with projects that last 25-75 years like most petrochemical plants and refineries. That is 6-18 elections, you would have to be very short sighted to base decisions on the current set of politcians in power at any given time. The plant will barely be finished and who ever is the next premier will be on the way out the door and it ll run into full swing two premiers from now.


Cheap natural gas and liquids is fueling a whole new wave of investment in alberta. Lots of places are putting in gas co generation and we will probably get the pembina pdh project as well which between the two would be 8 billion in investment.


I think now that oil and gas have been in the dumps for so long the nice margins of processing and refining are starting to look appealing vs slogging it out dumping raw product while losing money

[Big Grey Wolf]

If you look back in history Peter Locheed was the Petrochemical "Premier with Vision". All the other premiers since could not even spell petrochemicals. Nice to see even Notley moved 2 petrochemical projects forward, good value adding as Ford mentioned.

[darren32]

Originally Posted by 79ford

What most people dont realize is politics has nothig to do with projects that last 25-75 years like most petrochemical plants and refineries. That is 6-18 elections, you would have to be very short sighted to base decisions on the current set of politcians in power at any given time. The plant will barely be finished and who ever is the next premier will be on the way out the door and it ll run into full swing two premiers from now.

We have been working on this project for almost 3 years. Very nice to see it is going ahead now.

[DiabeticKripple]

Originally Posted by Big Grey Wolf

If you look back in history Peter Locheed was the Petrochemical "Premier with Vision". All the other premiers since could not even spell petrochemicals. Nice to see even Notley moved 2 petrochemical projects forward, good value adding as Ford mentioned.

Nah these companies see that Notley is done with Kenney being elected.

[operator john]

Let's see some refinery construction. Refine our own.

[79ford]

Originally Posted by DiabeticKripple

Nah these companies see that Notley is done with Kenney being elected.

Most of these plants run for a minimum of 40 years.... or ten elections, politics has nothing to do with anything lol. You would have to be the silliest goomba of a company to base half century business decisions on election polls.

The plant I work at has been running since the 1950's or about 16 elections.


This propylene plant was concieved under redford rule and Williams co. The owner at the time was actually considering building it in louisiana because both places have cheap nat gas liquids for feed and alberta had high construction costs due to winterization stuff because of our lousy winters.

Interpipeline bought williams canada and continued construction of the initial groundwork on this projec and has now decided to bring it to a finish.


This project was concieved under conservative rule, continued under ndp rule and got the greenlight, it will be commissioned half way through the next provincial term and probably be fully operational and debugged by the end of it... then continue to run for at the very minimum of 9 years or whatever all their initial supply contracts were for.

That is 3 elections...... you honestly think who may or may not get elected has anything to do with a 25 year minimum lifespan project?

[79ford]

http://www.interpipeline.com/news/ne...&releaseId=343

QUOTE=DiabeticKripple;3692006]Nah these companies see that Notley is done with Kenney being elected.[/QUOTE]





As you can see the original concept was probably conjured up in 2010 or so with engineering starting for construction starting in 2013. Planned finished date of late 2021 which is probably more like a 2022/2023 commission and running by date.

Kenney, if he were to be elected will be up for an election by the time it starts up and stelmach was premier when this idea was conjured up which is what three premiers ago? Lol

At the rate alberta burns through premiers this plant will probably see 20 premiers before a compressor auxillary lube oil pump needs a rebuild, and people think a calagary by election has anything to do with interpipelines investment decisions?


Politicians are like logs floating down a river for petrochemical plants and refineries.... some logs float by nice and easy, others kinda bounce around and get lodged in awkward places that arent ideal, other logs dislodge jammed logs, some logs have welcome or unwelcome guests but generally not matter what the river keeps flowing.


Bottom line is this thing means billions in new investments, high paying jobs and a customer for alberta propane that sells a finished product that can be shipped anywhere, no didling with pipeline weenies, no provinces to deal with other than good old alberta.

The way drillers go after oil and condensate in the shale formations all the associated natural gas and gas liquids will needs a home vs being dumped as a byproduct of condensate/oil production. That dumping hurts all your traditional dry gas producers and associated down stream plants, kills refiners light ends sales.

[I_forget]

Kiewit will be the main contractor I’ve heard.

[ESOXangler]

Originally Posted by 79ford

http://www.interpipeline.com/news/ne...&releaseId=343

QUOTE=DiabeticKripple;3692006]Nah these companies see that Notley is done with Kenney being elected.

As you can see the original concept was probably conjured up in 2010 or so with engineering starting for construction starting in 2013. Planned finished date of late 2021 which is probably more like a 2022/2023 commission and running by date.

Kenney, if he were to be elected will be up for an election by the time it starts up and stelmach was premier when this idea was conjured up which is what three premiers ago? Lol

At the rate alberta burns through premiers this plant will probably see 20 premiers before a compressor auxillary lube oil pump needs a rebuild, and people think a calagary by election has anything to do with interpipelines investment decisions?


Politicians are like logs floating down a river for petrochemical plants and refineries.... some logs float by nice and easy, others kinda bounce around and get lodged in awkward places that arent ideal, other logs dislodge jammed logs, some logs have welcome or unwelcome guests but generally not matter what the river keeps flowing.


Bottom line is this thing means billions in new investments, high paying jobs and a customer for alberta propane that sells a finished product that can be shipped anywhere, no didling with pipeline weenies, no provinces to deal with other than good old alberta.

The way drillers go after oil and condensate in the shale formations all the associated natural gas and gas liquids will needs a home vs being dumped as a byproduct of condensate/oil production. That dumping hurts all your traditional dry gas producers and associated down stream plants, kills refiners light ends sales.[/QUOTE]

Only problem I have with all of this is the comment about the aux oil pump. Just changed one out on a 6 month old compressor.

Get your facts straight man...

Haha

[79ford]

Originally Posted by ESOXangler

Only problem I have with all of this is the comment about the aux oil pump. Just changed one out on a 6 month old compressor.

Get your facts straight man...

Haha

That lube oil pump lasted longer than Jim Prentice,lol

I think all the chemical plants are a really good way to diversify the economy... you still use hydrocarbon feedstock but you produce stuff that humans need even if electric cars etc catch on in a big way.

There has got to be alot of propane etc sloshing around out by ftsask/redwater with all those fractionators etc around there.

[Big Grey Wolf]

Nice to see Notley is taking a chapter out of Peter Lougheeds play book! Maybe a Lady of Vision! Value adding rather than ship it down a pipe to Texas for American jobs for Trump.

[Map Maker]

Originally Posted by ESOXangler

Politicians are like logs floating down a river for petrochemical plants and refineries.... some logs float by nice and easy, others kinda bounce around and get lodged in awkward places that arent ideal, other logs dislodge jammed logs, some logs have welcome or unwelcome guests but generally not matter what the river keeps flowing.

Is it just me or did this sound more like a bowel movement

[1899b]

Originally Posted by Big Grey Wolf

If you look back in history Peter Locheed was the Petrochemical "Premier with Vision". All the other premiers since could not even spell petrochemicals. Nice to see even Notley moved 2 petrochemical projects forward, good value adding as Ford mentioned.

Like you spelling Lougheed...

[dmcbride]

Originally Posted by Big Grey Wolf

Nice to see Notley is taking a chapter out of Peter Lougheeds play book! Maybe a Lady of Vision! Value adding rather than ship it down a pipe to Texas for American jobs for Trump.

Shipping Jobs to Trump?

[smith88]

Originally Posted by Big Grey Wolf

Nice to see Notley is taking a chapter out of Peter Lougheeds play book! Maybe a Lady of Vision! Value adding rather than ship it down a pipe to Texas for American jobs for Trump.

Has ****** all to do with Nothead, it is the company's finding the feedstocks to make an investment of this size profitable.

[79ford]

Originally Posted by smith88

Has ****** all to do with Nothead, it is the company's finding the feedstocks to make an investment of this size profitable.

Pretty much, propane is cheap and the price of propylene is good. Just like other major hydrocarbon production projects or processing projects.... to prove out an oil field or petrochem/refining idea, engineer and construct it then finally run it takes a good 7-10 years or more. Thats three premiers come and a few gone.

Everyone is drilling in iraq, why? You can make alot of money nothing to do with government.