Canada-based energy infrastructure business Inter Pipeline Fund is to spend a total of $751 million (€572 million) throughout 2012, it announced on 30 January. Of this, over $470 million will be invested in the bulk liquid storage segment
The company predicts capital expenditures in the bulk liquid storage sector to reach an estimated $475 million in 2012, $459 million of which will be used to complete the acquisition of four Denmark-based petroleum storage terminals
An additional $16 million will be invested in the development of ‘organic growth projects’ relating to the liquid storage sector. Approximately $12 million of the $16 million will be invested in UK-based terminals, while the remaining $4 million will be spent at the newly purchased facilities in Denmark.
Inter Pipeline’s $12 million UK budget will help finance the construction of new tanks, as well as tank replacements and modifications at the Immingham terminal. The company is currently building new tanks with a total storage capacity of 170,000 barrels of heavy fuel oil and has condensate. 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 Gulfhaven terminal.
Additionally, a further $246 million will be invested in organic growth projects, including the development of pipeline capacity expansion projects. Seventy four percent of this, or $182 million, will be spent on projects in the oil sands transportation sector. Around $38 million of this budget will be spent in the NGL extraction business segment, and the remaining $26 million directed toward project within the bulk liquid storage and conventional oil pipelines segments.
The remaining $46 million of Inter Pipeline’s $751 million 2012 capital expenditure programme will go towards sustaining capital projects.