Inter Pipeline Fund announces transportation agreement for Canadian Natural Resources Kirby South oil sands project
Monday, Aug 12, 2013Inter Pipeline Fund ("Inter Pipeline") (TSX:IPL.UN) announced today that it has entered into a long term agreement with Canadian Natural Resources ("CNR") to transport diluent and bitumen blend for the Kirby South oil sands project. Approximately $95 million in pipeline and associated facilities have been constructed to connect the Kirby South production site to the Cold Lake pipeline system.
Under the terms of the agreement, CNR has contracted for approximately 63,000 barrels per day (b/d) of bitumen blend and 18,000 b/d of diluent transportation capacity for the Kirby South project beginning in August 2013. Inter Pipeline's investment is supported by a long term contract which does not involve exposure to throughput volumes or commodity price fluctuations.
"We are very pleased to be the transportation service provider for the Kirby South oil sands project," commented David Fesyk, President and CEO of Inter Pipeline. "This is a highly accretive investment which complements our current expansion activities in the Cold Lake region. Our long term, integrated expansion plans are unfolding as we anticipated."
In late March, Inter Pipeline announced that it had executed definitive transportation agreements for a major $2.6 billion capacity expansion program on its Cold Lake and Polaris systems in support of three oil sands projects owned by the FCCL Partnership ("FCCL"), a business venture between Cenovus and ConocoPhillips.
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