The company said it is now generating cash flow under a 25-year diluent transportation agreement with Imperial as linefill and wet commissioning activities has begun.
In addition, Inter Pipeline said the construction of a new $90m pipeline lateral and facilities from the Polaris system to the Kearl project was completed on schedule.
Imperial has signed for 60,000 barrels per day (b/d) of firm ship-or-pay transportation capacity on the Polaris pipeline system, which is being expanded under a $1bn capital program.
With this expansion of the pipeline system, the aim is to provide diluent service to the Christina Lake, Narrows Lake and Foster Creek projects owned by Cenovus and ConocoPhillips.
Upon completion, the Polaris system’s capacity is expected to grow from nearly 120,000 b/d to 820,000 b/d.
Inter Pipeline has announced long-term shipping arrangements representing about 50% of total expansion capacity.
Under the shipping contract, the Alberta-based firm will earn nearly $36m of EBITDA on an annual basis for the next quarter century.
