Inter Pipeline Fund Announces Long Term Ethane Sales Agreement with NOVA Chemicals

Inter Pipeline Fund Announces Long Term Ethane Sales Agreement with NOVA 
Chemicals 
CALGARY, ALBERTA -- (Marketwired) -- 04/15/13 -- Inter Pipeline Fund
("Inter Pipeline") (TSX:IPL.UN) announced today that it has entered
into a binding agreement with NOVA Chemicals Corporation ("NOVA")
involving the long term sale of ethane production from its Cochrane
extraction plant. Under the new agreement, NOVA will purchase the
majority of ethane volumes produced from Inter Pipeline's extraction
facilities at Cochrane, Alberta. The contract extends to the end of
2024 and will significantly increase cash flow within Inter
Pipeline's ethane extraction business unit. 
"Inter Pipeline is pleased to announce a long term agreement with one
of Canada's leading petrochemical producers," commented David Fesyk,
President and CEO. "The new contract includes improved pricing and
commercial terms when compared to historical ethane contracts in
Alberta. This reflects continued strong market demand for ethane in
the Province, particularly from large, stable sources of long term
supply." 
In 2012, Inter Pipeline's Cochrane extraction plant produced
approximately 52,000 barrels per day, making it the largest ethane
production facility in Canada. NOVA currently purchases a significant
portion of ethane production from the Cochrane facility under an
agreement due to expire at the end of 2014. 
Commercial Terms        
The term of the new ethane sales agreement begins on January 1, 2015
and extends for a 10 year period. Inter Pipeline and NOVA have also
agreed to amend certain terms of the existing ethane contract at
Cochrane for the interim period through December 31, 2014.  
Under the terms of the new agreement, Inter Pipeline will receive a
combination of fixed and variable revenue payments which include the
recovery of operating costs. Inter Pipeline expects that over 50% of
cash flow under the new contract will be derived from fixed payments
which are not dependent on natural gas throughput levels at the
Cochrane plant. This will result in more stable and predictable cash
flow. Under the current agreement, Inter Pipeline's cash flow is
dependent on variable ethane production levels at the Cochrane plant. 
Structuring the new contract with a significantly higher fixed
payment compone
nt also creates a stronger alignment of incentives for
both parties to maximize natural gas flow rates through the Cochrane
plant.      
Attractive Economics  
Based on conservative gas flow forecasts, the new ethane sales
agreement is expected to generate EBITDA of approximately $40 million
per year. This is approximately double the EBITDA generated under the
current sales agreement. Higher cash flow under the new contract is
expected to result in accretion of 5 cents per unit relative to cash
available for distribution. 
Revisions to Existing Contract       
Inter Pipeline and NOVA have agreed to amend certain terms under the
existing ethane sales contract at Cochrane during the interim period
prior to commencement of the new agreement. As a result of these
amendments, Inter Pipeline forecasts it will receive incremental
EBITDA of $10 million per year in 2013 and 2014 from ethane sales to
NOVA at the Cochrane extraction facility. 
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
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,
forward EBITDA estimates relating to the NOVA Chemicals ethane sales
agreement. 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
www.sedar.com. 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
noted. 
Non-GAAP Financial Measures      
Certain financial measures referred to in this news release, namely,
"EBITDA", 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
Jeremy Roberge
Vice President, Capital Markets
403-290-6015 or 1-866-716-7473
jroberge@interpipelinefund.com 
Inter Pipeline Fund
Tony Mate
Director, Corporate and Investor Communications
403-290-6166
tmate@interpipelinefund.com
www.interpipelinefund.com