|By Marketwired .||
|January 29, 2014 09:20 AM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/29/14 -- Inter Pipeline Ltd. ("Inter Pipeline") (TSX:IPL) announced today a $1.3 billion capital expenditure program for 2014, primarily directed towards the expansion of its oil pipeline systems. Rising customer demand for transportation capacity in the oil producing regions serviced by Inter Pipeline has driven $3.4 billion in capital investment since 2012. Organic growth projects are expected to account for about 97 percent of 2014's total expenditures, with modest sustaining capital requirements accounting for the remainder.
In 2014, the majority of capital expenditures will support the development of Inter Pipeline's oil sands transportation business where nearly $1.2 billion will be invested in new pipeline and facility construction projects. An additional $70 million has been allocated for new pipeline connection and capacity enhancement projects to meet growth in light and medium oil volumes within Inter Pipeline's conventional oil gathering business segment. Elsewhere, growth capital spending plans include approximately $10 million in each of Inter Pipeline's NGL extraction and bulk liquid storage businesses. Consistent with recent years, a total of $40 million has been allocated for sustaining capital projects in 2014.
Capital Expenditure Summary
2014 2013 (millions) Forecast Forecast ------------------------- Organic Growth Capital Oil Sands Transportation(i) $1,180 $1,850 Conventional Oil Pipelines 70 15 NGL Extraction(i) 10 30 Bulk Liquid Storage 10 25 ---------- ---------- Total Organic Growth Capital 1,270 1,920 Sustaining Capital 40 30 ---------- ---------- Total Capital $1,310 $1,950 ---------- ---------- ---------- ---------- (i) Includes Inter Pipeline's 85% ownership interest in the Cold Lake pipeline system or 50% interest in the Empress V NGL extraction facility
Oil Sands Transportation
Inter Pipeline is continuing to advance its major integrated expansion program that commenced in 2013 on the Cold Lake and Polaris pipeline systems. This expansion program is primarily supported by 850,000 barrels per day ("b/d") of committed bitumen blend and diluent delivery capacity for three oil sands projects operated by the FCCL Partnership, a business venture between Cenovus Energy and ConocoPhillips. Total capital expenditures for this project are expected to be $2.9 billion. Of this amount, approximately $1.5 billion was incurred in 2013, approximately $1.1 billion is forecast to be spent in 2014, with the remainder scheduled for 2015 through 2017. Total expenditures are currently forecast to be 12 percent higher than previous project estimates. Higher projected costs are primarily the result of elevated labour expenses, project scope changes and the refinement of cost estimates. Inter Pipeline is not economically impacted by the majority of these cost increases since annual revenue payments made by FCCL are generally tied to actual capital costs incurred.
The FCCL integrated expansion program involves the construction of 840 kilometres (km) of pipeline and seven mainline pump stations. To the end of December 2013, approximately 400 km of pipeline have been installed and construction is underway on all seven stations. The project remains on schedule and certain capacity expansion elements are expected to be complete in mid 2014. As project phases enter commercial operation, Inter Pipeline will begin generating fixed annual payments under high quality, long-term ship-or-pay contracts with the FCCL Partnership.
In addition to the FCCL expansion project, Inter Pipeline expects to advance approximately $90 million of other organic growth projects on the Cold Lake pipeline system. These projects include a pipeline connection to a new unit train loading facility owned by Canexus Corporation and other system enhancement projects.
On the Polaris pipeline system, Inter Pipeline will spend roughly $40 million on several diluent delivery projects and pumping facility upgrades. Approximately $30 million will be incurred to expand product measurement facilities at the Lamont station for the Canexus unit train project and to expand mainline pumping stations to accommodate increased volumes for the Imperial Oil Kearl project. The remaining $10 million will be spent on other diluent delivery projects including a connection to Athabasca Oil Corporation's Hangingstone project.
Conventional Oil Pipelines
Inter Pipeline's conventional oil gathering systems continue to benefit from dramatically increased drilling activity and the application of new well completion technologies. This is creating a need for new investments in battery connection projects and pipeline capacity expansions.
As a result, capital investments in Inter Pipeline's conventional oil gathering segment are forecast to set a new record. Approximately $70 million will be spent in 2014 to enhance oil handling and transportation facilities on the Bow River, Central Alberta and Mid-Saskatchewan pipeline systems through new battery connection, facility upgrade, rail access and oil storage projects.
In the NGL extraction business segment, Inter Pipeline expects growth capital expenditures to be approximately $10 million in 2014. Investments will focus on several projects to further improve the recovery of ethane and propane-plus products extracted at Inter Pipeline's Cochrane and Empress straddle plants.
Bulk Liquid Storage
Inter Pipeline expects to spend approximately $10 million on organic growth capital projects in its bulk liquid storage segment in 2014. The majority of capital will be invested at terminals in the United Kingdom and Germany operated by Inter Pipeline's wholly owned subsidiary Simon Storage. Approximately $9 million will be spent on tank life extension projects and storage infrastructure to support new business opportunities.
Remaining investment will be incurred within Inter Pipeline's bulk liquid storage subsidiary in Denmark where dredging and mooring improvements will enable the handling and berthing of larger vessel sizes. New blending and mixing equipment will also be installed in several fuel oil tanks, improving the flexibility of storage operations.
Inter Pipeline's sustaining capital forecast for 2014 is approximately $40 million, similar to that incurred in previous years.
In the European bulk liquid storage business, Inter Pipeline expects to spend about $13 million in sustaining capital. Expenditures will be spread across several terminals on jetty refurbishments, pump replacements and routine terminal upgrades.
Sustaining capital expenditures in Inter Pipeline's Canadian pipeline and NGL extraction business segments will total approximately $16 million.
Approximately $11 million will be spent on corporate sustaining capital initiatives, primarily associated with information technology, management information systems and asset management programs. These expenditures reflect Inter Pipeline's commitment to safe and reliable operations through the use of leading edge technologies.
Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation, bulk liquid storage and natural gas liquids extraction 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 shares trade on the Toronto Stock Exchange under the symbol IPL.
Certain information contained herein may constitute forward-looking statements that involve known and unknown risks, assumptions, uncertainties and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, as such statements are not guarantees of future performance. Inter Pipeline in no manner represents that actual results, levels of activity and achievements will be the same in whole or in part as those set out in the forward-looking statements herein. 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 assumptions, risks, uncertainties and other factors include, but are not limited to, assumptions, risks and uncertainties associated with: operations, such as loss of markets, regulatory matters, environmental matters, industry competition, potential delays and cost overruns of construction projects, including the Polaris and Cold Lake pipeline system projects, the status, credit risk and continued existence of customers having contracts with Inter Pipeline and its subsidiaries, 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.
Effective September 1, 2013, Inter Pipeline completed an arrangement pursuant to which, among other things, the outstanding Class A units of Inter Pipeline Fund were converted into common shares of Inter Pipeline Ltd. This resulted in the conversion to a dividend paying corporation, Inter Pipeline Ltd., which continues as a successor issuer to Inter Pipeline Fund. Any references to Inter Pipeline prior to September 1, 2013 refers to Inter Pipeline Fund and its consolidated subsidiaries, and any references to Inter Pipeline subsequent to September 1, 2013 refers to Inter Pipeline Ltd. and its consolidated subsidiaries. Similarly, any references to common shares, shareholders or dividends used prior to September 1, 2013, refer to Class A units, unitholders and distributions of Inter Pipeline Fund, and any references to common shares, shareholders or dividends used subsequent to September 1, 2013 refer to common shares, shareholders and dividends of Inter Pipeline Ltd.
All dollar values are expressed in Canadian dollars unless otherwise noted.
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Oct. 22, 2016 09:00 PM EDT Reads: 2,234
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 22, 2016 09:00 PM EDT Reads: 1,240
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Oct. 22, 2016 09:00 PM EDT Reads: 3,886
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 22, 2016 08:45 PM EDT Reads: 843
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Oct. 22, 2016 08:45 PM EDT Reads: 2,001
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Oct. 22, 2016 08:45 PM EDT Reads: 2,467
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 22, 2016 08:15 PM EDT Reads: 673
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
Oct. 22, 2016 08:15 PM EDT Reads: 3,774
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 22, 2016 07:45 PM EDT Reads: 1,818
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 22, 2016 07:00 PM EDT Reads: 769
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 22, 2016 06:45 PM EDT Reads: 620
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Oct. 22, 2016 06:00 PM EDT Reads: 8,963
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 22, 2016 05:30 PM EDT Reads: 488
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 22, 2016 05:30 PM EDT Reads: 971