Inter Pipeline chases oil sands growth
Inter Pipeline Fund, with its eye fixed on the oil sands, will spend C$977 million in 2008, setting a record for the fast-growing Canadian pipeline company. Its 2007 capital budget was C$469 million.
For 2008, it has earmarked C$844 million for its oil sands transportation segment, including the recently acquired Corridor system and related expansion, and C$60 million for the Cold Lake system.
The C$1.8 billion expansion of Corridor (previously owned by Kinder Morgan Canada) is designed to boost capacity to 465,000 barrels per day in 2008 from 300,000 bpd, while bitumen blend capacity on the Cold Lake system, to handle production from Imperial Oil, EnCana, Canadian Natural Resources and Shell Canada, should raise volumes to 560,000 bpd within 12 months from 435,000 bpd.
Extending its reach to Europe, Inter Pipeline plans to spend C$38 million on its bulk liquid storage business in response to the escalating demand for biofuel storage facilities. It will invest C$32 million to construct an additional 318,000 barrels of tankage on the west coast of the United Kingdom.
Inter Pipeline, which distributed 7 cents per unit in December, expects to maintain that monthly level to 2010 and beyond, despite changes in federal tax rules in 2011.
Currently, Inter Pipeline carries 212,000 bpd of conventional oil, 600,000 bpd of bitumen blend and 142,000 bpd of natural gas liquids.
—Gary Park
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