Oil & Gas Product News Logo

Inter Pipeline announces Capital Expenditure Program for 2019

0151/37510_en_07258_39505_inter-pipeline-logo.jpg

Company info

Suite 3200, 215 – 2nd Street S.W.
Calgary, AB
CA, T2P 1M4

Website:
interpipeline.com

Phone number:
403-290-6000

Read more

Inter Pipeline Ltd. has announced  a $1.46 billion capital expenditure program for 2019. Approximately $1.34 billion, 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 $3.5 billion 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."

NGL Processing

Within this business segment, approximately $1.1 billion 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 $20 million 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 $10 million 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 $100 million 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 $60 million to advance the previously announced Stettler Crude Oil Terminal Expansion on the Central Alberta pipeline system. This $82 million 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 $90 million is targeted for investment in Inter Pipeline's oil sands transportation business over the next year. Approximately $50 million 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 $40 million of capital will be invested in various organic growth projects on the Cold Lake, Polaris and Corridor pipeline systems.

Bulk Liquid Storage

Inter Pipeline is planning to spend approximately $20 million 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.

Sustaining Capital

Inter Pipeline expects to invest approximately $120 million in sustaining capital expenditures in 2019. Approximately $30 million will be allocated to the replacement of processing equipment and the improvement of site infrastructure within our NGL processing business segment. A further $30 million will be directed towards corporate infrastructure including enhancements to information technology systems.

Approximately $40 million will be devoted to improvements to the bulk liquid storage assets, with the remaining $20 million spent on a range of projects across Inter Pipeline's pipeline transportation businesses.

Financing

Inter Pipeline continues to maintain a strong balance sheet with significant liquidity available on its committed revolving credit facility. Funding for Inter Pipeline's 2019 capital program is expected to be provided through a combination of undistributed cash flow from operations, capacity available under its existing $1.5 billion revolving credit facility, the periodic issuance of new term or hybrid debt securities and proceeds from existing dividend re-investment programs.



More from Industry News

$2 billion TransAlta energy investment move to include natural gas over coal

TransAlta Corporation has introduced its Clean Energy Investment Plan, which includes converting its existing Alberta coal assets to natural gas and advancing its leadership position in renewable energy. The total cost of the plan is expected to be approximately $2 billion which includes approximately $800 million of renewable energy projects already under construction.

Oversupply of natural gas to push U.S. prices sharply down: IHS Markit

A persistent oversupply of natural gas will drive the 2020 average price at the Henry Hub down (in real terms) to a level not seen in decades, according to new report from IHS Markit. The oversupply—to be reinforced by a new surge in associated gas production from the Permian basin—will push the average price down below $2/MMBtu for the year, IHS Markit said. That is the lowest prices have averaged in real terms since the 1970s. In nominal terms, the last time that prices fell below $2 was 1995.

Subscribe to our free newsletter

Get our newsletter

Learn more

Oil and gas PPE landscape shows positive outlook, says Frost & Sullivan

The outlook for the uptake of personal and protective equipment (PPE) in the oil & gas (O&G) industry looks promising with the expansion of O&G activities through new global projects, improved stability and the presence of many occupational hazards. Vendors should focus on developing a global presence, multiproduct offerings, and close customer interactions to harness current growth opportunities. Frost & Sullivan expects the mature O&G PPE market to grow at a compound annual growth rate (CAGR) of 3.7% to reach $7.59 billion by 2023.

$1.4 billion power cogen plant planned for Suncor's oil sands base plant

Suncor is replacing its coke-fired boilers with two cogeneration units at its Oil Sands Base Plant. The cogeneration units will provide reliable steam generation required for Suncor's extraction and upgrading operations and generate 800 megawatts (MW) of power. The power will be transmitted to Alberta's grid, providing reliable, baseload, low-carbon power, equivalent to approximately 8% of Alberta's current electricity demand. This project will increase demand for clean natural gas from Western Canada.

August shows slight yearly increase in Canadian rig count

Baker Hughes, a GE company announced that the Baker Hughes international rig count for August 2019 was 1,138, down 24 from the 1,162 counted in July 2019, and up 130 from the 1,008 counted in August 2018. The international offshore rig count for August 2019 was 244, down 11 from the 255 counted in July 2019, and up 32 from the 212 counted in August 2018.

Clariant marks opening of new high throughput experimentation lab

Clariant has opened its next High Throughput Experimentation (HTE) Laboratory in Houston, Texas - the energy capital of the United States. The location is key as the new facility will be the first of its kind supporting the Oil & Gas industry, offering new and sophisticated solutions for customers. This lab is part of a global Clariant initiative to expand HTE capabilities to all Clariant Business Units, including direct support for Oil Services in North America, the Asia Pacific region, Latin America, Africa and the North Sea.

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

Orbital Gas Systems secures GasPTi orders from leading U.S. energy producer and transporter

Orbital Gas Systems has received orders to supply GasPTi systems for deployment across multiple natural gas plants by one of the largest U.S.-based producers and transporters of energy. These orders, part of a nascent, ongoing roll-out of GasPTi across the customer's extensive natural gas assets, will be utilized to deliver operating and environmental improvements and practically eliminate ongoing costs associated with maintenance and natural gas consumption at certain customer facilities. 

Enbridge reaches agreement with shippers to put Line 3 replacement into service

Enbridge Inc. has reached a commercial agreement with shippers to place the Canadian portion of the Line 3 replacement pipeline into service by the end of this year. This agreement reflects the importance of this safety-driven maintenance project to protecting our environment and ensuring the continued safe and reliable operation of the pipeline well into the future.

Quebec universities get $8.2 million to research oil spill response

Canada has the world's longest coastline and is surrounded by three oceans and the health of our oceans matters to all of us. The Government of Canada is dedicated to protecting oceans and waterways and to keeping them clean, secure and productive for the benefit of all Canadians, now and into the future. It is of vital importance that protection is given to the marine ecosystems that are home to an abundance of ocean life, support more than 350,000 jobs and sustain hundreds of coastal and Indigenous communities. The government also recognizes that scientific research is fundamental to evidence-based decision-making when planning and carrying out marine conservation efforts.

Subscribe to our free newsletter

Get our newsletter

Learn more

Bakken shale production growth will be constrained by flaring restrictions and infrastructure bottlenecks

There is considerable potential to raise crude oil production in the Bakken shale play from the current level of approximately 1.44 million barrels of oil per day (mmbd) to at least 2 mmbd. However, flaring regulations and infrastructure bottlenecks in North Dakota are limiting production growth, according to GlobalData.

Rival downhole tools secures five year collaborative supply agreement for drilling motors

Rival Downhole Tools (Rival), a portfolio company of EV Private Equity, has secured a five-year collaborative supply agreement for drilling motors for US Land from a major oilfield services provider. Rival will utilize its market-leading engineering and operational capabilities to support the customer's substantial and growing directional drilling business. Rival will also accelerate the growth of its operational footprint into multiple basins to optimize its proximity to drilling activity. 

Hand protection maker Mechanix Wear a good fit to Gryphon investors

Gryphon Investors, a San Francisco-based middle-market private equity firm, has signed a definitive agreement to make a significant investment in Mechanix Wear, a leading designer and manufacturer of high-performance work gloves. Working alongside current owner and CEO Michael Hale, who will retain an ownership stake in the Company, Gryphon intends to build a leading platform in the Personal Protective Equipment (PPE) sector. The transaction, which is expected to close in the fourth quarter, is subject to customary closing conditions. Terms of the deal were not disclosed.

Husky to resume full production at White Rose

Following an extensive investigation, flow line repairs, integrity testing and approval of the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), Husky Energy will resume production from the remaining two drill centres shut in following the November 2018 oil spill offshore Newfoundland and Labrador. Husky will now begin an orderly restart and expects to reach full rates by early next week.

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more