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Inter Pipeline Announces Sale of Central Utility Block to Fengate

October 08, 2018 [Tank News International] - Inter Pipeline Ltd recently announced the sale of the Heartland Petrochemical Complex’s Central Utility Block (CUB) to Fengate Capital Management, a privately held infrastructure and real estate investment firm based in Canada.



Under the terms of the sale, Inter Pipeline will recover all of its development capital and Fengate will assume responsibility for funding the CUB capital cost, currently estimated at $600m. Fengate has also entered into long-term agreements to supply core utilities to Inter Pipeline’s Heartland Petrochemical Complex in exchange for structured capital and operating recovery fee payments from Inter Pipeline.

Christian Bayle, Inter Pipeline’s President and Chief Executive Officer stated: “We are very pleased with the results of this competitive sales process.

“By partnering with a quality firm like Fengate for the development of the CUB, Inter Pipeline has meaningfully reduced its overall capital cost obligation for the Heartland Complex.

“Furthermore, Inter Pipeline’s capital fee payments to Fengate are expected to be well below our cost of capital, making this transaction accretive to the Heartland Complex project economics.”

The CUB is a 102 MW natural gas powered cogeneration facility capable of supplying Inter Pipeline with electricity, steam and other key utilities for its 100% owned Heartland Complex near Edmonton, Alberta. The $3.5 billion complex, which excludes the CUB capital cost, consists of integrated propane dehydrogenation and polypropylene plants.  The complex will convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene pellets. Construction of the Heartland Complex is in progress with completion scheduled for late 2021.

For more information, visit: www.interpipeline.com

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Article contains 240 words
Added to TankTerminals.com on: Monday, October 08, 2018 by Tank News International.
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