Inter Pipeline’s storage segment Inter Terminals has recorded strong third quarter financial results and record high utilisation rates.
Its European bulk liquid storage segment generated funds from operations of $30.2 million in the third quarter of 2016, compared to $29 million in the third quarter of 2015.
Inter Terminals executed two long-term contracts to provide a total of 175,000 barrels of new chemical storage capacity at its Seal Sands Terminal in the UK. Five new storage tanks will be constructed for $25 million and are due to be complete by mid-2017.
The company reports that utilisation rates were at record highs, with an average of 98% compared to 93% in the same quarter last year.
Utilisation rates were higher in all operating countries predominately due to increased storage demand and stronger contango pricing relationships in certain petroleum product future markets.
Inter Pipeline’s funds from operations in its oil pipeline’s business remained stable and throughput decreased by 8%, driven by a reduction in product drilling and development activity due to low commodity prices, natural production declines and weather related disruptions.