February 6, 2012 [Canadian Business] - Inter Pipeline Fund plans to spend $751 million on capital projects this year, with more than half of the funds designated for a Danish storage acquisition that closed this month, the company announced Monday.
The Calgary-based company said about $459 million of the capital spending, or 61 per cent of the total, will be used to fund the previously announced acquisition of a Danish bulk liquid storage facility that closed in January.
The company also plans to spend $246 million on internal growth projects and $46 million on sustaining capital projects.
The organic growth will romarily focus on expanding pipeline capacity, with $182 million directed to the oilsands segment, $38 million for the natural gas liquids segment and $26 million for bulk liquid storage and conventional oil pipelines.
Inter Pipeline bought the four petroleum terminals in Denmark from a subsidiary of DONG Energy A/S. The deal adds 10.7 million barrels of petroleum storage to Inter Pipeline’s European storage operations.
