​Inter Pipeline $900 million 2018 budget to focus on petrochemical complex

Image: Inter Pipeline

After announcing earlier this week that it would proceed with the $3.5-billion Heartland Petrochemical Complex, Inter Pipeline says the majority of its 2018 capital program will focus on related engineering and construction activities.

Smaller investments will also be made to enhance the connectivity of Inter Pipeline’s oilsands transportation and conventional oil pipeline assets, expand NGL processing infrastructure, and develop European storage operations, the company said in a statement.

In 2018, approximately $600 million is expected to be invested in the Heartland complex on a number of activities including finalizing engineering, continued procurement of equipment, facility module fabrication and site construction activities. Construction of the facility, which will convert locally sourced propane into 525,000 tonnes per year of polypropylene, a feedstock for plastics, is expected to be complete by late 2021.

Inter Pipeline expects to invest approximately $110 million in its oilsands transportation business in 2018. Approximately $35 million will be directed towards the continued development of a diluent and bitumen blend connection to the Canadian Natural’s Kirby North SAGD project, which the company plans to connect to its Cold Lake and Polaris pipeline systems by 2020.

The remaining oilsands capital will be invested in various organic growth projects on the Cold Lake, Polaris and Corridor pipeline systems and primarily focus on the construction of new diluent receipt and bitumen blend delivery connections.

In conventional oil, Inter Pipeline expects to invest $20 million in 2018 on several smaller projects including expanding oil battery connections, truck terminal construction and capacity expansions on the Mid-Saskatchewan and Bow River systems.

In Europe, Inter Pipeline says demand for its storage services continues to remain robust. In aggregate, the company plans to invest approximately $20 million in 2018 on various organic growth projects at its terminals in the U.K, Germany, Denmark and Sweden including jetty and tank storage infrastructure enhancements as well as cavern improvements.

Next year Inter Pipeline also plans $80 million in sustaining capital spending. Approximately $21 million of the total will be spent in the European bulk liquid storage business on tank upgrades with an additional $28 million spent on several projects across Inter Pipeline’s NGL processing business segment including automation improvements and equipment upgrades.

Approximately $17 million will be invested in corporate infrastructure, including improvements to corporate information technology systems. The remaining $14 million will be spent on a number of projects across Inter Pipeline’s transportation businesses.