Inter Pipeline Fund

Inter Pipeline Fund

November 04, 2005 09:15 ET

Inter Pipeline Fund Announces Long-term Fuel Storage Contract in the United Kingdom

CALGARY, ALBERTA--(CCNMatthews - Nov. 4, 2005) - Inter Pipeline Fund (TSX:IPL.UN) (TSX:IPL.DB) ("Inter Pipeline") announced today that its wholly-owned international subsidiary, Simon Storage Limited ("Simon Storage") has entered into a 20 year fuel storage contract with Greenergy Biofuels Ltd. ("Greenergy"). Under the terms of the contract, Simon Storage will invest approximately Pounds Sterling 4.9 million (CDN$10.3 million) to modify existing storage facilities at the Immingham West terminal to accommodate production from a new 750,000 barrel per year biodiesel production plant to be constructed by Greenergy. Simon Storage will provide approximately 100,000 barrels of storage capacity to support plant operations and will sublease land to Greenergy for the new plant. Operations are expected to commence in late 2006.

Inter Pipeline will receive stable, contract based cash flows supported by guaranteed tank lease and product handling fee payments, plus recovery of capital and utility costs from the Greenergy project. The project will be accretive to Inter Pipeline's unitholders, generating roughly $0.01 per unit annually to funds from operations.

Immingham terminal's high level of integration with the nearby ConocoPhillips and Total refineries will enable the efficient movement of products between the Greenergy plant and the refineries. Simon Storage will also facilitate the blending of biodiesel production with other petroleum products stored at the terminal. In addition, the Immingham terminal's close proximity to the major market hubs of Rotterdam, Netherlands and Antwerp, Belgium can facilitate the export of biodiesel production to European markets.

"This contract illustrates the importance of the strategic location of Simon's terminals and the benefits of integration with adjacent customer operations" commented David Fesyk, President and Chief Executive Officer. "We are very pleased to play an increasing role in the rapidly growing market for renewable fuels in the United Kingdom and continental Europe."

Inter Pipeline Fund

Inter Pipeline is a major petroleum transportation, storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline is an investment grade owner and operator of energy infrastructure assets in western Canada, the United Kingdom and the Republic of Ireland. Additional information about Inter Pipeline can be found at

Inter Pipeline is a member of both the S&P/TSX Capped Energy Trust and the Capped Income Trust indices. Class A Units and convertible debentures trade on the Toronto Stock Exchange under the symbols IPL.UN and IPL.DB, respectively.

Eligible Investors

Only persons who are residents of Canada, or if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) are entitled to purchase and own Class A Units and debentures of Inter Pipeline.


Certain information set forth above may contain forward-looking statements that involve risks and uncertainties. Such information, although considered reasonable by Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements.

All dollar values are expressed in Canadian dollars unless otherwise noted.

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