Inter Pipeline Ltd. (TO: IPL) said Jan. 20 that its $400 million capex program for 2015 will focus on expanding the oil sands transportation and conventional oil gathering business.
Organic growth projects will account for about $340 million of the total capex. The rest will support other business segments’ capital requirements.
The 2015 capital program is lower than spending levels in recent years, Inter Pipeline said. Spending in the oil sands transportation segment will be lower, at $195 million, amid construction work on the Cold Lake and Polaris pipelines, the company added. About $95 million of that total will support projects on Polaris.
An additional $90 million is slated for pipeline construction and pump station work on Cold Lake and Polaris. These monies will help support $3 billion, in total capex, for expansion programs at two oil sands developments—Christina Lake and FCCL’s Foster Creek. FCCL is a venture between Cenovus and ConocoPhillips, Inter Pipeline added.
There is also $10 million for small-scale projects on the Cold Lake system.
About $115 million will be spent on conventional pipelines—the Bow River, Central Alberta and Mid-Saskatchewan systems.
About $10 million will support work on NGL extraction.
Sustaining capex will total about $60 million, $25 million of which will support corporate requirements, and $35 million will support operating businesses.
Midstream company Inter Pipeline Ltd. is based in Calgary, Alberta.
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