The bulk of Inter Pipeline’s $1.2 billion capital expenditures in 2020, $935 million, will go to advancing construction of its Heartland Petrochemical Complex in Strathcona County, Alta., particularly the 525,000-tonne/year polypropylene plant and the final stages of its propane dehydrogenation unit. The company expects to finish construction in 2021.
Another $45 million will support on-going work on a new storage cavern at Inter Pipeline’s 40,000-b/d Redwater Olefinic Fractionator and debottlenecking of its 2,350-cu m/day Pioneer II offgas extraction site.
Inter Pipeline plans to invest roughly $75 million across its pipeline transportation systems in 2020. Within conventional oil pipelines, the company’s focus is on the multi-phased expansion of its Central Alberta pipeline system. About $35 million will be invested to complete the first two phases of this program by spring 2020. This includes construction of two new 130,000-bbl storage tanks at Inter Pipeline's crude terminal near Stettler, Alta., and completion of the Viking Connector project.
The Viking Connector is a 75-km, 8-in. OD line that will connect Inter Pipeline's Throne Station on the Bow River pipeline system to the Central Alberta pipeline system in the Stettler area. This project is expected to add 10,000-15,000 b/d to the Central Alberta system, linking various grades of light crude from the Viking and Mannville formations in east-central Alberta to the Edmonton market hub.
About $30 million will go to improving operating efficiencies of Inter Pipeline’s oil sands transportation. The remaining $10 million will develop several smaller growth projects across the pipeline systems.
Inter Pipeline plans to spend roughly $40 million in 2020 to meet increased demand for storage at certain European sites. Several smaller enhancements and efficiency projects will also be completed at storage located in the UK, Sweden, Germany, and the Netherlands.
Most of the investment associated with the bulk liquid storage assets is contingent upon retaining the business following completion of a previously announced sales process.
