Inter Pipeline Fund Announces Completion of Bow River South System Expansion and July 2006 Cash Distribution
CALGARY, ALBERTA, July 11, 2006: Inter Pipeline Fund (Inter Pipeline) (TSX: IPL.UN) is pleased to announce that it has successfully completed the previously announced expansion of the Bow River pipeline system. Inter Pipeline constructed new stream transfer piping, trim blend facilities and installed new pump station capacity along the Bow River mainline, to facilitate higher southbound deliveries from the oil storage hub at Hardisty, Alberta to major refining markets in the northwest United States. Total southbound capacity for crude oil sourced from Hardisty is now approximately 36,000 barrels per day (b/d).
Currently, the Bow River system transports 143,000 b/d, of which 30,000 b/d originates from Hardisty to interconnecting pipelines near the Montana border. The total cost of the Bow River south expansion was approximately $13 million. On a cash flow per unit basis, the project will contribute approximately $0.02 per unit annually.
Inter Pipeline has also declared a cash distribution of $0.0650 per unit for July 2006. This distribution will be paid on or about August 15th to unitholders of record on July 31, 2006.
The regular monthly cash distribution rate of $0.0650 per unit is expected to be maintained subject to review from time to time by the Board of Directors of Inter Pipeline’s General Partner. Over the past several years, Inter Pipeline has been successful in maintaining stable and increasing levels of distributions to unitholders.
| Inter Pipeline
Fund |
Inter Pipeline is a major petroleum transportation, bulk liquid storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland.
Inter Pipeline is a member of the S&P/TSX Composite Index. Class A Units trade on the Toronto Stock Exchange under the symbol IPL.UN. |
Eligible
Investors
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| Only persons who are residents of Canada, or if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) are entitled to purchase and own Class A Units and debentures of Inter Pipeline. |
Disclaimer
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Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements. Such information, although considered reasonable by the General Partner of Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline’s securities filings at www.sedar.com. Except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.
All dollar values are expressed in Canadian dollars unless otherwise noted. |
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