INVESTMENT OVERVIEW IPL to construct Canadas first integrated propane dehydrogenation (PDH) and polypropylene (PP) complex Expected to add approximately 450 million to 500 million of average annual EBITDA, with 70% to 85% targeted to…
STRATEGIC RATIONALE The Heartland Petrochemical Complex is a transformational organic growth opportunity Accretive to future FFO per share Structured to generate high-quality, predictable cash flows Provides a footprint for future…
PDH AND PP OVERVIEW Ethane- Other Ethylene Marketed Canadian Propane PP Consumers or Mix Products Producers Marketers 3rd Party PP Propane 525 KTA Redwater Polymer Grade Propane Propylene (PGP) Redwater Olefinic PDH PP…
STRATHCONA COUNTY SITE CUB PDH Facility Key PDH regulatory permits obtained; PP permits well-advanced 200 acres of land strategically located Polypropylene Facility near ROF Multiple pipeline connections to ROF and other…
CAPITAL PROFILE & FINANCING STRATEGY Million Total project cost of 3.5 billion 2,500 400 million spent to date Target 60% debt and 40% equity financing through a combination of: Capacity available under existing 1.5 billion…
POLYPROPYLENE: A GLOBAL MAJOR POLYMER PP is a lightweight, durable and versatile thermoplastic polymer Largest single plastic globally PP has many desirable properties High melting point Non-reactive, no water or mold absorption…
POLYPROPYLENE DEMAND 2016 World Demand for 2016 North American Demand Major Polymers for Polypropylene Mexico Polypropylene 17% 26% Canada 6% Other Major United Polymers States 74% 77% PP is the worlds single largest…
US POLYPROPYLENE DEMAND BY REGION Northwest 2% Northeast 17% Midwest 43% Southwest 11% Southeast 17% Gulf Coast 10% Total 2016 US demand of 6,200 KTA Source: IHS Markit Materials 12
COMPETITIVE POLYPROPYLENE TRANSPORTATION Alberta Railing Alberta produced PP to the US Midwest 0.02 USD per lb US Midwest Railing USGC produced PP to the US Midwest 0.02 USD per lb US Gulf Coast (USGC) Transportation…
PROPANE FEEDSTOCK SUPPLY ADVANTAGE 000s b/d 350 IPL PDH & PP in-service Sustainable Canadian propane feedstock advantage 300 Over the long term the Canadian propane 250 market is expected to remain oversupplied 200 Supply expected…
UTILITY COST ADVANTAGE USD per MMBTU 2.25 NYMEX less AECO Natural Gas Price 1.50 0.75 0.66 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Monthly Differential 10 Year Average IPL PDH and PP CUB tied to…
NORTH AMERICAN COST COMPETITIVENESS USD per metric ton 1,400 2017F PP Price 1,200 Delivered Cash Cost* 1,000 Indicative Margin 800 600 400 200 0 Heartland Complex US-Based PP Facilities Alberta produced…
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PROJECT STATUS Well-advanced PDH project Selected Honeywell UOPs C3 Oleflex technology Detailed engineering awarded to Fluor Corporation in 2013 and is 85% complete Completed early civil works program with major construction to…
PROJECT EXECUTION IPL is in a strong position to construct the Heartland Petrochemical Complex Lack of major project development in Alberta results in favorable engineering, procurement and construction environment, including…
KEY TAKEAWAYS Expected to be accretive to future FFO per share Expected to add 450 to 500 million of average annual EBITDA Target 70% to 85% of processing capacity to be underpinned by take-or-pay contracts Financing plan…
CONTACT INFORMATION SUITE 3200, 215 2ND STREET SW CALGARY, ALBERTA T2P 1M4 PHONE: 1 866 716 7473 PHONE: (403) 290 6000 FAX: (403) 290 6090 WEB: INTERPIPELINE.COM INVESTORRELATIONSINTERPIPELINE.COM 23
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