Capital expenditures in the bulk liquid storage segment are forecast to be approximately $475 million in 2012. Of this total, about $459 million was incurred in early January to complete the purchase of four petroleum storage terminals in Denmark.

Inter Pipeline expects to spend approximately $16 million on organic growth capital projects in the bulk liquid storage business segment in 2012. Approximately $12 million will be incurred at terminals in the United Kingdom, with $4 million being spent at the newly-acquired Danish terminals.

In the United Kingdom, Inter Pipeline’s $12 million capital program will focus on new tank construction projects, tank replacements and modification projects primarily at the Immingham terminal. New tanks are currently under construction for the storage of approximately 170,000 barrels of heavy fuel oil and gas condensate under new multi-year storage contracts. Additional rail loading facilities are also planned. In Denmark, growth capital spending will be directed toward new product blending and tank commissioning projects at the Gulfhavn terminal.

In the conventional oil pipeline segment Inter Pipeline plans to spend approximately $10 million in growth capital expenditures in 2012. High levels of horizontal drilling activity and growing production has created the need for new oil battery connections and the installation of related facilities on the Bow River and Mid Saskatchewan pipeline systems.

Inter Pipeline’s conventional oil gathering systems have benefited from the growth in production from the Pekisko and Viking formations in recent years.

Inter Pipeline’s sustaining capital forecast for 2012 is approximately $46 million. This represents a significant increase over 2011 levels, mainly due to one-time sustaining capital requirements at the Danish bulk liquid storage terminals.

Inter Pipeline expects to spend about $22 million in sustaining capital at the four Danish terminals. Sustaining capital expenditures include a fire system upgrade, various product containment improvements and other one-time compliance items. In the long term, sustaining capital requirements in Denmark are expected to average approximately $8-10 million per year.

In the United Kingdom, Germany and Ireland, Inter Pipeline also expects to spend approximately $7 million to improve terminal infrastructure and ensure compliance with European safety regulations.

In the NGL extraction segment, Inter Pipeline forecasts to spend approximately $7 million on sustaining capital projects in 2012. A new inlet separator and various building upgrades at the Cochrane facility account for the majority of costs.

Remaining sustaining capital expenditures include $5 million for smaller projects in the oil sands transportation and conventional oil pipeline segments and $5 million for corporate related expenditures, primarily related to information technology upgrades.