Canadas transportation, processing and storage player Inter Pipeline Fund has experienced high usage rates in its storage tanks, averaging 95.9%, up from the 94.3% usage rate achieved in Q2 2008.
Inter Pipeline Funds tank capacity increased by 96,000 barrels as new tanks were added at the Immingham terminal located on the east coast of England, UK.
Inter Pipeline's European bulk liquid storage business generated funds from operations in the second quarter of $9.9 million (6.9 million). This represents a slight decrease of 2% from Q2 2008 results.
Over the past year, the European storage business has strategically shifted its focus away from non-core lines of business such as product hauling, engineering services and third party facility management, the company says. This has resulted in lower revenues on a year-over-year basis, with a corresponding reduction in operating expenses and administration costs.
The news comes as the company announces its financial and operating results for the three and six month periods ended 30 June 2009. Funds from operations totalled $68.5 million in the second quarter, and the company introduced a $72 million expansion project on the Bow River system to allow shipment of segregated crude oil streams from the Hardisty oil storage hub.
Subsequent to quarter end Inter Pipeline Fund also extended its Nexen storage and marketing agreement for three years.