The Canadian Press - ONLINE EDITION

Inter Pipeline to expand its mid-Sask. pipeline service; to be completed in 2015

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CALGARY - Inter Pipeline Ltd. has agreements allowing it to proceed with a $100-million expansion of its Mid-Saskatchewan pipeline system involving construction of more than 50 kilometres of new mainline pipe to increase oil-carrying capacity.

The Calgary company says that with increased drilling activity and new technologies, oil production in the area serviced by its Mid-Saskatchewan pipeline has grown rapidly.

It says volumes have doubled to more than 70,000 barrels a day over the last two years, with much of the pipeline operating at or near full capacity.

Inter Pipeline (TSX:IPL) says it expects the expansion to enter commercial service in phases, beginning late this year and with the project fully completed by the second quarter of 2015.

The company says five oil producers have entered into ship or pay contracts with terms ranging from four to 10 years.

Inter Pipeline operates in the petroleum transportation, natural gas liquids extraction and bulk liquid storage business with a focus on Western Canada and northern Europe.

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