Inter Pipeline has reported strong second quarter 2018 financials of $261.5 million – an increase of $54.5 million compared to the same period in 2017.
The company says this increase is largely driven by record performance in the NGL processing business, which continues to have strong production volumes.
However, its bulk liquid storage segment experienced a decline in financial – reporting funds from operations of $17.4 million in the quarter, compared to $25.3 million in the second quarter of 2017. Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment.
Average storage utilisation rates during the second quarter were 84% compared to 98% for the same period in 2017. The decline in overall utilisation was largely reflective of unfavourable market conditions in Denmark. Utilisation remained strong in Sweden and Germany, where facilities are operating near capacity.
Civil construction and fabrication activities at the $3.5 billion Heartland Petrochemical Complex advanced considerably during the quarter. Piling activities were completed for the propane dehydrogenation facility, with more than 3,000 in place, and concrete work is well underway. Fabrication in Alberta and globally is progressing with the 90-meter propane/propylene splitter and an 800-tonne reactor expected to move to the Heartland Complex site near Fort Saskatchewan, Alberta in early 2019.