Inter Pipeline's Heartland Petrochemical Complex is shown under construction in Fort Saskatchewan, Alta., on Thursday, January 10, 2019. Inter Pipeline says its plans to conclude its search in the first half of next year for a partner in its new petrochemical plant. THE CANADIAN PRESS/Jason Franson

Pipeline hopes to find petrochemical partner in the first half of 2021

Pipeline hopes to find petrochemical partner in the first half of 2021

CALGARY — Inter Pipeline says it hopes to conclude its search for a partner in its $4-billion petrochemical project now under construction near Edmonton in the first half of next year.

“We continue to advance the process to secure a partner for a material interest in the Heartland Petrochemical Complex,” said CEO Christian Bayle on a conference call on Friday.

“We expect that work … will take into next year to conclude the process; however, there’s no assurance a transaction will be completed.”

Analysts pointed out the quest for a partner had previously been expected to wrap up by early 2021, although Bayle said there’s little significance to the change in wording.

Inter has been looking for a partner since late 2019 to share the cost of the project which has increased from the original estimate of about $3.5 billion.

The Calgary-based company concluded a deal to sell a majority of its European bulk liquid storage business to the CLH Group for $715 million earlier this week and Bayle said those proceeds, along with available credit lines, will help the company go ahead with funding the remaining $1.1 billion needed for the petrochemical project on its own if necessary.

Bayle praised the Alberta government’s petrochemical incentive program announced at the end of October which offers grants worth 12 per cent of eligible capital costs once a project is up and running.

Inter received $200 million in royalty credits in connection with the Heartland project in 2016 under the previous NDP government’s incentive program and Bayle said his understanding is that those credits can be converted to cash payments under the new program when the complex is in service in early 2022.

He wouldn’t say if the program will encourage the company to build more projects.

Inter plans to eventually sell its remaining eight storage terminals in Sweden and Denmark, Bayle said, adding those assets aren’t being marketed yet.

Inter reported third quarter net income of $38.7 million on revenue of $633 million, versus income of $79.9 million on revenue of $591 million in the same period last year.

Analysts polled by Refinitiv expected net income of $75.6 million on revenue of $555.5 million.

During the quarter, oilsands pipeline volumes fell to 1.06 million barrels per day from 1.18 million bpd in the year-earlier period.

Inter was forced to shut down part of its Polaris pipeline system for about two weeks after a leak was detected just east of the Fort McMurray airport in northern Alberta at the end of August.

Inter shares fell by as much as 85 cents or 6.4 per cent to $12.40 in Toronto on Friday.

This report by The Canadian Press was first published Nov. 13, 2020.

Companies in this story: (TSX:IPL)

Dan Healing, The Canadian Press

Pipeline

Just Posted

(File photo by Advocate staff)
37-year-old from Red Deer dies in highway crash

An individual from Red Deer has died after a collision on Highway… Continue reading

Grade one teacher Heidi Dimou arranges the desks in line with physical distancing policy in her class in preparation for the new school year at the Willingdon Elementary School in Montreal, on Wednesday, August 26, 2020. THE CANADIAN PRESS/Paul Chiasson
Alberta students expected to return to in-person learning next week

Kids can anticipate a return to the classroom next week in Alberta.… Continue reading

This grizzly bear had been hanging out near Aurum Lodge and the Cline River area and was later killed by Fish and Wildlife, says an area resident. (Contributed photo)
Grizzly sniffing for human food west of Nordegg killed

Lodge owner reminds campers to keep all food away from wildlife

Coal mining in Rockies. CP photo
Alberta gov’t releases preliminary results from coal mining survey

The provincial government has released the initial results from its coal policy… Continue reading

(Black Press file photo.)
Wildfire advisory lifted for Rocky area

The wildfire danger in the Rocky Mountain House Forest Area is now… Continue reading

Red Deer musician Curtis Phagoo is glad the Alberta government is investing $2 million to help the province’s live music industry, but he would have liked the criteria to be expanded, so the money could be used as relief to cover revenue shortfalls. (Contributed photo by Cory Michaud)
Red Deer musicians welcome $2M in grants to help live music, but would have preferred relief program

The money is for future projects and can’t be used for retroactive expenses

(CPAC)
Trudeau says he knew about investigation into general overseeing vaccines weeks ago

OTTAWA — Prime Minister Justin Trudeau says he learned weeks ago that… Continue reading

Canadian and American flags fly near the Ambassador Bridge at the Canada-USA border crossing in Windsor, Ont. on Saturday, March 21, 2020. Canadian residents are allowed to head to the United States for a COVID-19 vaccine and avoid quarantine on return if they meet some straightforward conditions, the Public Health Agency of Canada confirms.THE CANADIAN PRESS/Rob Gurdebeke
Canadians can drive to U.S. for COVID-19 vax and avoid quarantine, Ottawa confirms

TORONTO — Canadian residents are allowed to head to the United States… Continue reading

Prime Minister Justin Trudeau holds a press conference in Ottawa on Tuesday, May 18, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Quebec can modify part of the Canadian Constitution unilaterally: Trudeau

MONTREAL — Prime Minister Justin Trudeau says Quebec can unilaterally modify part… Continue reading

In this Thursday, April 29, 2021, file photo, giant bucket-wheel excavators extract coal at the controversial Garzweiler surface coal mine near Jackerath, West Germany. Canadian environmentalists are welcoming a report from the International Energy Agency that says new fossil fuel investment must end if the world is to meet its climate goals. THE CANADIAN PRESS/AP -Martin Meissner
Canadian environmentalists happy with International Energy Agency report

Environmentalists say a report from the International Energy Agency that concludes investment… Continue reading

Prime Minister Justin Trudeau holds a press conference in Ottawa on Tuesday, May 18, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Ceasefire needed in Israeli-Palestinian conflict to avoid loss of more civilians: PM

OTTAWA — Prime Minister Justin Trudeau says Canada is calling for a… Continue reading

A forest fire burns late into the evening northeast of Prince Albert, Sask., on Monday, May 17, 2021. THE CANADIAN PRESS/Kayle Neis
Saskatchewan wildfire grows, forcing evacuations in the area to expand

PRINCE ALBERT, Sask. — Dry conditions and strong winds caused a large… Continue reading

A man makes his way past signage to a mass COVID-19 vaccination centre at the University of Toronto's Mississauga campus during the COVID-19 pandemic in Mississauga, Ont., on Monday, May 17, 2021.  THE CANADIAN PRESS/Nathan Denette
Tam hopeful for summer even as Canada hits grim death milestone in COVID-19 pandemic

OTTAWA — Chief Public Health Officer Dr. Theresa Tam says she expects… Continue reading

Sheffield United’s Daniel Jebbison celebrates after scoring his side’s opening goal during the English Premier League soccer match between Everton and Sheffield United at Goodison Park in Liverpool, England, Sunday, May 16, 2021. THE CANADIAN PRESS/AP-Alex Pantling/Pool via AP
Canadian teenager Daniel Jebbison turns heads with Premier League goal

Jebbison, 17, is the youngest player in Premier League history to score on his first start in England’s top tier

Most Read