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The corporate mentioned it can retain storage tanks in Sweden and Denmark able to holding 19 million barrels.
“This can be a very constructive transaction for Inter Pipeline,” president and CEO Christian Bayle mentioned in a launch Tuesday, noting that the sale permits the corporate to refocus on its “larger development Canadian enterprise.”
“As such proceeds from the sale shall be used to scale back debt, strengthen our stability sheet and help with financing our massive capital expenditure program, together with the Heartland Petrochemical complicated,” he mentioned.
The petrochemical mission close to Edmonton has been one of many firm’s fundamental focus areas in recent times and likewise a supply of stress because the mission’s prices had been revised upward from $3.5 billion to $four billion earlier this yr. The power, which is able to course of 22,000 barrels of propane per day into polypropylene plastic pellets, has additionally secured $200 million in royalty credit from the Alberta authorities’s petrochemical diversification program.
Inter Pipeline has been trying to promote a part of its curiosity within the mission to a joint-venture accomplice. As prices have risen, so too has investor and analyst strain on the corporate to discover a accomplice for the power. The corporate can also be trying to enroll prospects for long-term contracts for the mission.
