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A Canadian Oil Sand Play

January 24, 2014 | About:

Inter Pipeline (IPL) (IPPLF) is a Canadian energy transport, storage, and natural gas liquid extraction company that transports about 1 million barrels per day of petroleum products and shipped about 40% of oil sands volume in 2012. The company operates in three areas:

  • Pipeline Operation.
  • Natural Gas Liquids (NGLs) Extraction.
  • Bulk Liquids Storage.

Business Operations

Pipeline Operations

Inter operates approximately 6,300 kilimeters of petroleum pipelines and has about 4.8 million barrel of storage in western Canada. It also transports 990,000 barrels per day of oil bitumen and conventional crude in 2012. Transport 15% of total western Canadian conventional volumes and roughly 40% of total oil sands volumes.

Natural Gas Operations

Inter operates one of the largest North America Natural Gas Extraction businesses with ownership in three major extraction facilities located in southern Alberta. There facilities have the capacity to process 6.2 bcf/d of of natural gas, and capacity to produce approximately 200,000 b/d of natural gas liquid. Inter currently processes 40% of natural gas exports from Alberta. 

Bulk Liquid Storage

Inter operates the fourth largest independent tank storage business in Europe. It operates two wholly owned entities. Simon Storage Limited holds Inter's storage operations in the UK, Ireland, and Germany. The company handles, blends and stores over 250 different products. Operates 8 bulk liquid storage terminals on the coasts of th UK, Germany and Ireland. Inter Terminal operate 4 terminals on the Danish Strait. Inter four terminals have a combined storage capacity of 11 million barrels.

Inter's Long Term  Shipping Agreements

Has executed $2.9 billion of commercially secured long-term shipping agreements fo Cold Lake . Other Long-Term Agreements:

  • Foster Creek, Christina Lake, Narrows Lake, and Kirby South.
  • Polaris pipeline expansion
  • 25 year agreement with Hangingstone oil sand project

Inter oil sand transportation business is expected to generate 60% of the companies consolidated 2015 EBITDA. The companys total capacity of its oil sand transportation infrastructure is 4.5 million b/d. There is plenty of room for the company to grow and for invetors to be rewarded. Its a great play for the Candian Oil Sand boom.

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