Pembina to expand Montney shale NGL pipeline capacity

Pembina Pipeline Corp. will install five new pump stations and upgrade five existing pump stations to expand NGL throughput capacity on its Peace and Northern Pipelines (together the Northern NGL System) by 55,000 b/d to accommodate increased field liquids extraction by producers in the Western Canadian Sedimentary Basin.

Pembina expects to bring 20,000 b/d of the expansion into service by yearend 2012 and the remaining 35,000 b/d by yearend 2013, subject to commercial arrangements and regulatory approvals.

The WCSB includes the Deep basin, Montney, Cardium, and Duvernay shales. The Northern NGL System's current capacity is 115,000 b/d with average daily volumes of about 88,000 b/d. Pembina expects this average to rise to 100,000 b/d by yearend due to commissioning of its Edson pipeline expansion and the Musreau Deep Cut facility.

Pembina has secured commercial agreements for 55% of the expanded system’s 170,000 b/d capacity.

Pembina expects its expansion to cost about $100 million.

Contact Christopher E. Smith at chriss@ogjonline.com.

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