Inter Pipeline lands $408-million grant for Heartland Petrochemical Complex
Posted Apr 5, 2021 10:00 am.
Last Updated Apr 5, 2021 12:39 pm.
CALGARY — Inter Pipeline says it will receive $408 million in cash grants for its Heartland Petrochemical Complex under an incentive program by the current Alberta government but will have to give up $200 million in royalty credits granted by the previous government.
In a news release, the Calgary-based company says its $4-billion integrated propane dehydrogenation and polypropylene production facility being built northeast of Edmonton will be the first recipient of the grant announced in October by the United Conservative Party government.
The same project, designed to transform abundant Alberta propane into plastic beads to be exported to manufacturers, received $200 million in royalty credits in 2016 under the previous NDP government’s incentive program.
The cash grant is to be paid to Inter Pipeline in equal instalments over three years once the complex is operational, expected in early 2022. The grants are to cover up to 12 per cent of eligible capital costs.
Inter Pipeline is continuing to fend off a hostile takeover bid by Brookfield Infrastructure Partners LP that values the company at $7.1 billion.
Brookfield is offering $16.50 per share in cash or 0.206 of a Brookfield Infrastructure Corp. class A exchangeable share, with the maximum cash available set at $4.9 billion. The offer is set to expire on June 7.
“The … grant recognizes the significant contribution HPC has and will continue to make to the Alberta economy,” said Inter CEO Christian Bayle in a news release.
“HPC’s construction has created thousands of well-paid technical, manufacturing and construction jobs over its multi-year build and has been a symbol of hope during difficult economic times for the province. In total, we expect that roughly $3 billion or three quarters of the project construction spend will be invested directly into materials and services provided by Alberta businesses.”
This report by The Canadian Press was first published April 5, 2021.
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