Inter Pipeline Fund Announces $1.5 Billion Capital Expenditure Program for 2013

Inter Pipeline Fund Announces $1.5 Billion Capital Expenditure Program for 2013 
CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Inter Pipeline Fund
("Inter Pipeline") (TSX:IPL.UN) announced today its capital
expenditure program for 2013. Inter Pipeline expects to spend
approximately $1.5 billion in 2013 under its largest-ever annual
capital investment plan. Organic growth projects are forecast to
account for more than 95 per cent of the total, with the remainder
being directed towards sustaining capital projects.  
As outlined in 2012, Inter Pipeline is advancing several major
expansion projects within its oil sands pipeline business segment.
Nearly $1.4 billion will be directed towards new oil sands
transportation infrastructure in 2013. Growth capital expenditures in
other business segments include approximately $30 million in the NGL
extraction business, $20 million in bulk liquid storage and $10
million in conventional oil pipelines. Consistent with last year,
Inter Pipeline expects to spend $40 million on sustaining capital
projects.  
Capital Expenditure Summary 


 
                                                                            
                                                            2013        2012
(millions)                                              Forecast    Forecast
                                                      ----------------------
Organic Growth Capital                                                      
 Oil Sands Transportation(i)                            $  1,390    $    262
 NGL Extraction(i)                                            30          29
 Bulk Liquid Storage                                          20          16
 Conventional Oil Pipelines                                   10          33
                                                      ----------------------
Total Organic Growth CapitalDanish Terminal                1,450         340
 Acquisition                                                   -         459
Sustaining Capital                                            40          40
                                                      ----------------------
Total Capital                                           $  1,490    $    839
                                                      -----
-----------------
                                                      ----------------------
(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 
Capital spending in 2013 will be dominated by expenditures related to
Inter Pipeline's integrated expansion program on the Cold Lake and
Polaris pipeline systems. This major expansion program involves the
provision of approximately 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
are expected to be $2.2 billion over the next 3 years, of which $1.1
billion will be incurred in 2013. 
The integrated expansion program will involve the construction of 840
kilometres of pipeline and seven mainline pump stations. New
facilities will enter commercial service in phases commencing in
2014. As discrete construction projects are completed, Inter Pipeline
will begin generating fixed annual payments under high quality
ship-or-pay contracts with the FCCL Partnership. Definitive
transportation agreements are expected to be executed in the first
quarter of 2013. 
During 2013, roughly $40 million will be invested to complete the
installation of two quarter-point stations and existing station
upgrades on the west leg of the Cold Lake pipeline system. This
mainline expansion project will increase bitumen blend capacity from
535,000 b/d to 650,000 b/d and is expected to be operational in mid
2013. 
On the Polaris system, Inter Pipeline will spend roughly $16 million
to complete new diluent delivery connections to Suncor's Athabasca
oil sands operations and the Sunrise project operated by Husky. 
Inter Pipeline's current oil sands development programs will result
in surplus capacity which will be available for future business. In
2013, Inter Pipeline plans to spend $170 million to provide
transportation service to a third party. This amount has been
backstopped through a capital funding arrangement, with no resulting
financial exposure to Inter Pipeline.  
NGL Extraction 
In the NGL extraction business segment, Inter Pipeline expects growth
capital investments to total $30 million in 2013. Approximately $25
million will be spent at the Cochrane NGL extraction facility on a
project to reduce the sulphur content of propane-plus products. This
project, which is expected to cost $53 million in total, will ensure
continued access to premium-priced product markets. The installation
of new liquids sweetening facilities is expected to be complete in
late 2013.  
Remaining growth capital will be spent on various efficiency
improvement projects at the Cochrane and Empress NGL extraction
facilities.  
Bulk Liquid Storage 
Inter Pipeline expects to spend approximately $20 million on organic
growth capital projects in the bulk liquid storage segment in 2013.
Roughly half of this amount will be incurred at Simon Storage
terminals in the United Kingdom and Germany, with remaining
expenditures incurred within the Inter Terminals subsidiary in
Denmark. 
In the United Kingdom and Germany, approximately $10 million will be
incurred on tank refurbishments, equipment upgrade projects and new
fuel additive facilities. In Denmark, approximately $9 million will
be incurred to acquire an additional fuel oil storage tank from DONG
Energy at the Ensted terminal. Approximately $1 million will be
invested in new product blending equipment to enhance services
available to storage customers.  
Conventional Oil Pipelines 
In the conventional oil pipelines segment, approximately $10 million
will be spent to enhance oil handling and transportation facilities
on the Bow River, Central Alberta and Mid Saskatchewan pipeline
systems. Various new battery connection, facility upgrade, rail
access and storage projects are planned in 2013. 
Inter Pipeline's conventional oil gathering systems continue to
benefit from increased drilling activity and the application of new
well completion technologies.  
Sustaining Capital  
Inter Pipeline's sustaining capital forecast for 2013 is
approximately $40 million, similar to that incurred in 2012. 
In the bulk liquid storage business, Inter Pipeline expects to spend
about $18 million in sustaining capital. Expenditures will be spread
across several terminals in Europe on tank repair projects and the
upgrade of ship docking infrastructure. In addition, a number of
automation and mechanical enhancement projects are planned to improve
terminal operations and ensure compliance with new legislative
requirements. 
Sustaining capital expenditures in the NGL extraction segment are
forecast at approximately $7 million for 2013. Major expenditures
include replacement of a heat exchanger and office building upgrades
at the Cochrane NGL extraction plant.  
Remaining sustaining capital expenditures include $7 million for
smaller projects in the oil sands transportation and conventional oil
pipelines segments and $8 million for corporate related expenditures,
primarily related to information technology initiatives and corporate
office expansions. 
Inter Pipeline Fund 
Inter Pipeline is a major petroleum transportation, bulk liquid
storage and natural gas liquids extraction business based in Calgary,
Alberta, Canada. Structured as a publicly traded limited partnership,
Inter Pipeline owns and operates energy infrastructure assets in
western Canada, the United Kingdom, Denmark, Germany and Ireland.
Additional information about Inter Pipeline can be found at
www.interpipelinefund.com. 
Inter Pipeline is a member of the S&P/TSX Composite Index. Class A
Units trade on the Toronto Stock Exchange under the symbol IPL.UN.  
Eligible Investors 
Pursuant to Inter Pipeline's limited partnership agreement dated
October 9, 1997, as amended, all unitholders are required to be
residents of Canada. A copy of the limited partnership agreement can
be found at www.interpipelinefund.com by selecting "Corporate
Governance". If a unitholder is a non-resident of Canada
("Non-Eligible Unitholder"), he will not be considered to be a member
of the partnership effective the date the Class A Units were
acquired. Inter Pipeline requires all Non-Eligible Unitholders to
dispose of their Class A Units in accordance with the limited
partnership agreement. 
In most cases, a unitholder with an address outside of Canada will be
a Non-Eligible Unitholder.  
Disclaimer 
Certain information contained herein may constitute forward-looking
statements that involve risks and uncertainties. Forward-looking
statements in this news release include, but are not limited to,
timing and cost schedules of Polaris and Cold Lake capital projects,
and statements regarding the potential cash flow contributions from
growth projects currently under development. Readers are cautioned
not to place undue reliance on forward-looking statements. Such
information, although considered reasonable by the General Partner of
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 risks and uncertainties include, but are
not limited to, risks associated with operations, such as loss of
markets, regulatory matters, environmental risks, industry
competition, potential delays and cost overruns of construction
projects, including the Cold Lake and Polaris expansions, 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. 
All dollar values are expressed in Canadian dollars unless otherwise
noted. 
Non-GAAP Financial Measures 
Certain financial measures referred to in this news release, namely
"growth capital expenditures" and "sustaining capital expenditures",
are not measures recognized by GAAP. These non-GAAP financial
measures do not have standardized meanings prescribed by GAAP and
therefore may not be comparable to similar measures presented by
other entities. Investors are cautioned that these non-GAAP financial
measures should not be construed as alternatives to other measures of
financial performance calculated in accordance with GAAP. 
Contacts:
Inter Pipeline Fund - Investor Relations
Jeremy Roberge
Vice President, Capital Markets
403-290-6015 or 1-866-716-7473
jroberge@interpipelinefund.com 
Inter Pipeline Fund - Media Relations
Tony Mate
Director, Corporate and Investor Communications
403-290-6166
tmate@interpipelinefund.com
www.interpipelinefund.com
 
 
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