Midstream operator Inter Pipeline Ltd. announced its 2019 capital budget on Monday, and the company is increasing its spending, with the vast majority of investment related to the Heartland Petrochemical Complex.
The $3.5-billion facility, which is under construction near Edmonton, will receive $1.1 billion of Inter Pipeline’s $1.34 billion capital budget next year.
This is an increase from the company’s spend of $900 million for 2018, $820 million of which was directed towards the petrochemical facility.
Inter Pipeline will also invest $100 million in its conventional oil gathering business on “several projects” to serve emerging light oil plays in Alberta's East Duvernay and Viking regions.
The company will spend $90 million in its oilsands transportation segment, approximately $50 million of which will be to complete the connection of its Cold Lake pipeline system to Canadian Natural Resources’ Kirby North SAGD project. Kirby North is currently under construction and expected to be up and running late next year.
Additionally, 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.
The company expects to spend approximately $120 million next year on sustaining capital activities.