Inter Pipeline Fund has entered into a binding agreement with NOVA Chemicals Corporation (NOVA) involving the long term sale of ethane production from its Cochrane extraction plant. Under the new agreement, NOVA will purchase the majority of ethane volumes produced from Inter Pipeline's extraction facilities at Cochrane, Alberta. The contract extends to the end of 2024 and will significantly increase cash flow within Inter Pipeline's ethane extraction business unit.

"Inter Pipeline is pleased to announce a long term agreement with one of Canada's leading petrochemical producers," commented David Fesyk, President and CEO. "The new contract includes improved pricing and commercial terms when compared to historical ethane contracts in Alberta. This reflects continued strong market demand for ethane in the Province, particularly from large, stable sources of long term supply."

In 2012, Inter Pipeline's Cochrane extraction plant produced approximately 52,000 barrels per day, making it the largest ethane production facility in Canada. NOVA currently purchases a significant portion of ethane production from the Cochrane facility under an agreement due to expire at the end of 2014.

Tags: Inter Pipeline Fund