Inter Pipeline slashes capital spending budget for 2015

Tue Jan 20, 2015 6:15pm EST
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CALGARY, Alberta Jan 20 (Reuters) - Canadian energy transportation and storage company Inter Pipeline plans to spend C$400 million on its capital program in 2015, less than a third of last year's budget, the company said on Tuesday.

The company, which operates the largest pipeline gathering system in Alberta's oil sands, said the 2015 capital program will be lower than in recent years as Inter Pipeline completes construction work on a C$3 billion expansion of its Cold Lake and Polaris systems.

Last year Inter Pipeline announced a capital spending budget of C$1.3 billion.

The company joins dozens of other Canadian oil and natural gas producers and oilfield services companies that have slashed capital budgets in response to tumbling benchmark crude prices, which have more than halved since June 2014.

Inter Pipeline plans to focus on growing its oil sands transportation and conventional oil gathering businesses in 2015, spending C$195 million and C$115 million respectively on those areas.

The company shipped nearly 30 percent of Canadian crude oil supply and about 35 percent of oil sands volumes in 2013.

($1 = $1.21 Canadian) (Reporting by Nia Williams; Editing by Chris Reese)