Inter Pipeline Ltd. ("Inter Pipeline") (TSX:IPL) announced today that it successfully placed into service a diluent and bitumen blend pipeline connection to Canadian Natural's Kirby North oil sands project.
Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.
The connection is underpinned by a long-term take-or-pay agreement that will provide Inter Pipeline with stable cash flow that is not dependent on commodity prices or volume shipped.
“We are pleased to provide transportation services to this high-quality oil sands project, having completed construction six months ahead of schedule and under budget,” said Christian Bayle, President and Chief Executive Officer of Inter Pipeline. “Inter Pipeline’s oil sand pipeline systems are strategically positioned to capture additional growth and we look forward to continuing to work with Canadian Natural as they develop their future oil sands opportunities.”
The transportation agreement with Canadian Natural increases contracted capacity commitments by approximately 30,000 b/d and 8,000 b/d on Inter Pipeline’s Cold Lake and Polaris pipeline systems respectively. Inter Pipeline invested approximately $110 million to construct the infrastructure to complete the connection to the Kirby North production facility.
Source: Company Press Release