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Inter Pipeline Fund Announces Long Term Ethane Sales Agreement with NOVA Chemicals

Inter Pipeline Fund (IPL-UN.TO) has entered into a binding agreement with NOVA Chemicals Corporation 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. The contract extends to the end of 2024 and will significantly increase cash flow within Inter Pipeline's ethane extraction business unit, the company said in a statement.

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.

IPL shares were down 33 cents at $23.42.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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