Inter Pipeline Announces Completion of Polaris Pipeline Expansion for Imperial's Kearl Project
CALGARY, ALBERTA--(Marketwired - June 22, 2015) - Inter Pipeline Ltd ("Inter Pipeline") (TSX:IPL) announced today that it has completed capacity expansion work on its Polaris Pipeline system in support of the second phase of the Kearl oil sands project operated by Imperial Oil Resources Ventures Limited ("Imperial"). In August 2013, Imperial exercised its contractual option to increase its firm capacity commitment on the Polaris Pipeline system from 60,000 barrels per day to 120,000 barrels per day. This prompted a $45 million pump station expansion which is now in service.
As part of the expansion, Inter Pipeline re-commissioned three existing pump stations on the 12-inch diameter mainline that runs between Lamont, Alberta and the Kearl site north of Fort McMurray. The capacity of this pipeline segment has been increased to approximately 165,000 barrels per day, bringing the total installed capacity of the Polaris pipeline system to approximately 865,000 barrels per day.
"Polaris remains the largest merchant diluent system in the area, with 540,000 barrels per day of diluent capacity commitments from eight oil sands producers" said Christian Bayle, President and Chief Executive Officer of Inter Pipeline. "With an ultimate transportation capacity of 1.3 million barrels per day, we are well positioned to continue to cost effectively capture new transportation opportunities as regional production grows over time."
As a result of the completion of the Polaris capacity expansion, Inter Pipeline will now receive an incremental $19 million in annual EBITDA under the 25-year Kearl ship-or-pay transportation contract.
Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada and northern Europe. Additional information about Inter Pipeline can be found at www.interpipeline.com
Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL.
Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, including, but not limited to, statements regarding expectations with respect to revenues to be generated and the possibility of successfully securing new connection opportunities. Such information, although considered reasonable by Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition, potential delays and cost overruns of construction projects, other potential delays associated new and existing oil sands projects, and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline's securities filings at www.sedar.com. The forward-looking statements contained in this news release are made as of the date of this document, and, except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.
All dollar values are expressed in Canadian dollars unless otherwise noted.
Non-GAAP Financial Measures
Certain financial measures referred to in this news release including EBITDA are not measures recognized by GAAP. These non-GAAP financial measures do not have standardized meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other entities. Investors are cautioned that these non-GAAP financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with GAAP.
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