Inter Pipeline Announces Completion of First Phase of Polaris Pipeline Expansion

Inter Pipeline Announces Completion of First Phase of Polaris Pipeline Expansion

Posted on Monday July 21, 2014 at 09:53AM

CALGARY, ALBERTA, JULY 18 2014: Inter Pipeline Ltd. (“Inter Pipeline”) (TSX: IPL) is pleased to announce that a major component of the $1.4 billion Polaris pipeline system expansion has been successfully completed and placed into commercial service. Accordingly, Inter Pipeline has begun generating cash flow under its 20-year diluent transportation agreement with the FCCL Partnership (“FCCL”), a business venture between Cenovus Energy and ConocoPhillips Canada Resources Corp.

Diluent shipments are expected to commence shortly from Inter Pipeline’s Lamont pump station to FCCL’s Foster Creek and Christina Lake oil sands production facilities utilizing a new 290 kilometre, 30-inch diameter mainline and associated pipeline laterals. In aggregate, FCCL has contracted for 350,000 barrels per day of firm ship-or-pay capacity on the new mainline, which will generate approximately $90 million in annual EBITDA for Inter Pipeline. These shipping arrangements represent approximately 50% of the newly installed expansion capacity. Inter Pipeline is aggressively pursuing opportunities to attract additional third party shippers to the system.

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Author: Lamont County Now

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