Inter Pipeline Fund Executes Definitive Transportation Agreements for Previously Announced Major Integrated Oil Sands

Inter Pipeline Fund Executes Definitive Transportation Agreements for 
Previously Announced Major Integrated Oil Sands Development Program 
CALGARY, ALBERTA -- (Marketwire) -- 03/26/13 -- Inter Pipeline Fund
("Inter Pipeline") (TSX:IPL.UN) announced today that it has entered
into binding agreements to provide bitumen blend and diluent
transportation services to three major oil sands projects owned by
the FCCL Partnership ("FCCL"), a business venture between Cenovus
Energy and ConocoPhillips. Inter Pipeline first announced plans to
integrate and expand its Cold Lake and Polaris pipeline systems on
July 31, 2012. 
Inter Pipeline's development plans include providing 500,000 barrels
per day ("b/d") of committed bitumen blend capacity and 350,000 b/d
of diluent capacity to FCCL through the construction of approximately
840 kilometres of new pipeline and seven new pump stations. These
facilities will provide transportation service to existing FCCL
projects at Foster Creek and Christina Lake, as well as the Narrows
Lake project which is under development. A map of new connections to
the FCCL projects and a description of planned construction activity
are available on our website at 
Inter Pipeline anticipates that new diluent delivery infrastructure
for the Foster Creek and Christina Lake projects will become
operational in mid 2014. Expanded bitumen blend transportation
service for the Foster Creek project is expected to commence in early
2015. New bitumen blend and diluent delivery facilities for the
Narrows Lake project are expected to enter service in mid 2017. Inter
Pipeline currently forecasts this development program will cost $2.6
billion, up from a previous estimate of $2.2 billion due to changes
in the scope of requested services and the further refinement of
capital costs. 
"The new long term contracts with FCCL will anchor Inter Pipeline's
organic growth platform for the next four years," commented David
Fesyk, President and Chief Executive Officer. "These investments will
expand and strengthen our oil sands gathering business, while
significantly increasing the portion of cash flow derived from high
quality cost-of-service contracts." 
Commercial Terms      
The new transportation service agreements with FCCL are structured to 
provide Inter Pipeline with highly predictable cash flow.  Inter
Pipeline will receive fixed annual payments under long term
ship-or-pay contracts which include recovery of all operating and
sustaining capital costs. Furthermore, Inter Pipeline is not exposed
to cost overrun risk related to capital invested to meet FCCL
capacity requirements since fixed annual payments will be based on
actual costs incurred.  
The initial term of the agreements is 20 years with options to extend
the term for a further 30 years.  
Inter Pipeline's $2.6 billion investment will generate significant
long term EBITDA. Beginning in mid 2014, the new diluent delivery
facilities for the Foster Creek and Christina Lake projects should
generate approximately $70 million in annualized EBITDA.  By early
2015, annual EBITDA is expected to grow to approximately $210 million
upon commissioning of new bitumen blend facilities for the Foster
Creek project.  Long term annual EBITDA is expected to range between
$260 million and $290 million per year after diluent and bitumen
blend facilities for the Narrows Lake project enter commercial
service in mid 2017.   
For perspective, Inter Pipeline's EBITDA in 2012 was approximately
$570 million.  When complete, the annual cash flow contribution from
the integrated expansion program is expected to exceed 45% of current
EBITDA.  This illustrates the scale and materiality of Inter
Pipeline's current expansion program relative to existing operations. 
In aggregate, the $2.6 billion investment program is expected to be
accretive to cash available for distribution by approximately 31
cents per unit on a long term average basis.  
Inter Pipeline's integrated oil sands expansion program will also
result in significant spare capacity in excess of FCCL's
requirements.  Inter Pipeline has retained full rights to market
excess capacity to third parties.     
Inter Pipeline anticipates that the majority of its capital
commitments over the next four years will be met through a
combination of capacity available under its existing committed credit
facility, undistributed cash flow from operations, the periodic
issuance of new term debt and proceeds from existing distribution
re-investment programs.  In addition, Inter Pipeline may supplement
its capital requirements through the periodic issuance of
comparatively small amounts of underwritten equity.  
Inter Pipeline wholly owns the Polaris pipeline system and owns 85%
of the Cold Lake pipeline system.  The quoted $2.6 billion funding
obligation excludes the capital contribution expected from Inter
Pipeline's 15% partner on the Cold Lake pipeline system. 
Inter Pipeline Fund      
Inter Pipeline is a major petroleum transportation, natural gas
liquids extraction, and bulk liquid storage 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  
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 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.      
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 forward EBITDA estimates. 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", "intends", 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, and the ability to access sufficient capital from internal
and external sources. The impact of any one assumption, risk,
uncertainty or other factor on a particular forward-looking statement
is not determinable with certainty, as these are interdependent and
Inter Pipeline's future course of action depends on management's
assessment of all information available at the relevant time. You can
find a discussion of risks and uncertainties in Inter Pipeline's
securities filings at  The forward-looking statements
contained in this news release are made as of the date of this
document and are not exhaustive, 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
Non-GAAP Financial Measures 
Certain financial measures referred to in this news release, namely,
"EBITDA" and "cash flow" 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.  
Inter Pipeline Fund - Investor Relations:
Jeremy Roberge
Vice President, Capital Markets
403-290-6015 or 1-866-716-7473 
Inter Pipeline Fund - Media Relations:
Tony Mate
Director, Corporate and Investor Communications
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