Inter Pipeline has announced it plans to invest $1.46bn in infrastructure projects in 2019. Approximately $1.34bn, or 92 percent, of total capital expenditures will be for organic growth initiatives with the remaining invested in sustaining capital projects.
“Our 2019 capital program will largely be focused on construction activities related to the $3.5bn Heartland Petrochemical Complex,” stated Christian Bayle, Inter Pipeline’s President and CEO. “This transformational investment is proceeding according to plan with an expected completion date of late 2021. Rounding out our capital program will be investments in various smaller scale infrastructure projects to enhance service offerings within our pipeline, NGL processing and storage business units.”
Bulk Liquid Storage
Inter Pipeline is planning to spend approximately $20m in 2019 to meet increased demand for storage at certain facilities located in the United Kingdom, Sweden and Germany, as well as the recently acquired terminal in the Port of Amsterdam.
Within this business segment, approximately $1.1bn is expected to be committed to advance the development of the Heartland Petrochemical Complex. In 2019, detailed design work and procurement of major equipment will be completed. Mechanical construction of the propane dehydrogenation plant will continue including the installation of major pressure vessels and other critical equipment modules. Site construction of the integrated polypropylene plant will also advance including the installation of the polypropylene reactor and other core mechanical components. The project continues to be on schedule and budget.
Additionally, approximately $20m will be directed toward various projects to increase processing capacity, as well as enhance product storage and delivery systems at the Redwater Olefinic Fractionator. The remaining $10m of capital will be invested in smaller organic growth projects at Inter Pipeline’s NGL extraction plants.
Conventional Oil Pipelines
In 2019, Inter Pipeline is planning to invest approximately $100m in its conventional oil gathering business. This capital will develop several projects to serve emerging light oil plays in Alberta’s East Duvernay and Viking regions.
The investments include $60m to advance the previously announced Stettler Crude Oil Terminal Expansion on the Central Albertapipeline system. This $82m project includes the construction of two 130,000 barrel crude oil storage tanks and additional truck unloading capacity which are expected to enter service in phases between mid-2019 and mid-2020. The remaining $40 million will be spent developing several smaller projects, including new midstream marketing facilities on the Bow River pipeline system.
Oil Sands Transportation
Approximately $90m is targeted for investment in Inter Pipeline’s oil sands transportation business over the next year. Approximately $50m will support the completion of a connection from the Cold Lake pipeline system to Canadian Natural’s Kirby North oil sands project. Construction of the dual 23 km pipeline and pump station is scheduled to be completed in early 2019, with an in-service date of mid-2019.
The remaining $40m of capital will be invested in various organic growth projects on the Cold Lake, Polaris and Corridor pipeline systems.
For more information visit www.interpipeline.com
4th December 2018