Inter Pipeline Mulls Sale of European Storage Assets
Canadian energy infrastructure company Inter Pipeline is exploring a sale of its Inter Terminals European bulk liquid storage business.
Should a sale take place, the company said it could use the proceeds to reduce debt and fund its capital expenditure program, including the Can$3.5 billion Heartland Petrochemical Complex, which is under construction in Strathcona County, Alberta. Construction of the complex, which will convert locally sourced propane into 525,000 t/y PP, is underway with completion planned for late 2021.
Inter Terminals has roughly 37 million barrels of storage capacity across 23 terminals in the UK, Denmark, Sweden, Germany, Netherlands and Ireland. The company bought NuStar Energy only last November for Can$354 million, adding seven coastal terminals in the UK and Netherlands.
"Our decision to explore alternatives is consistent with Inter Pipeline's practice of making prudent long-term portfolio management decisions particularly in light of our organic growth initiatives,” said Christian Bayle, Inter Pipeline’s president and CEO.
The company has not put a definitive timeline on its potential divestment plans, adding also that it is not certain a transaction will result.
Separately, Inter Pipeline confirmed it had received an "unsolicited, non-binding, conditional and indicative proposal" to purchase the company and stated it is not in negotiations with any third party, nor is there any “agreement, understanding or arrangement with respect to any such transaction.”
The announcement was in response to a request from the Investment Regulatory Organization of Canada to comment on recent media reports about the unsolicited bid. Inter Pipeline said it would not comment further until “such disclosure is warranted and in accordance with the requirements of applicable law.
