Pembina announces WCSB NGL, crude pipeline expansions

Pembina Pipeline Corp. plans to significantly expand natural gas liquids and crude oil and condensate capacity on its Peace and Northern Pipeline Systems by a combined 108,000 b/d. Pembina will add 55,000 b/d of crude and condensate capacity to its Peace Pipeline system by mid to late-2014 and 53,000 b/d to its Northern NGL system by early to mid-2015.

The company said the expansions would accommodate increased volumes associated with strong drilling results and increased field liquids extraction by producers in the Western Canadian Sedimentary Basin. Pembina expects the projects to cost $545 million, plus $125 million to tie producers in to the expanded systems.

Increased producer activities in the Dawson Creek, Grande Prairie, and Kaybob-Fox Creek areas prompted Pembina to further expand its Northern NGL System (the Phase 2 NGL Expansion). Phase 2 will require Pembina to install four new pump stations, upgrade three existing pump stations, and add storage. Pembina will reconfigure existing pipelines and build 94 km of new pipeline: 50 km from Judy Creek to Whitecourt; 32 km from Namao to Fort Saskatchewan; and 12 km from Doe Creek to Spirit River.

Pembina expects the Phase 2 NGL Expansion to cost $330 million. The 53,000 b/d of added capacity will bring system capacity to 220,000 b/d.

Pembina announced the Phase 1 expansion in fourth-quarter 2011 (OGJ Online, Nov. 11, 2011), adding 52,000 b/d to reach 167,000 b/d by yearend 2013. Pembina has entered into commercial arrangements for the Phase 1 capacity, received regulatory approval, and is building the project. Work on Phase 2 is conditional on meeting similar commercial and regulatory requirements.

The same producer activities led Pembina to also further expand its Peace Pipeline System's crude oil and condensate capacity (the Phase 2 LVP Expansion). Phase 2 LVP will require Pembina to install five new pump stations, upgrade six existing pump stations, and add storage. Pembina will also reconfigure existing pipelines and build 10 km of new pipeline from Gordondale to Spirit River.

Pembina expects the Phase 2 LVP Expansion to cost $215 million. The 55,000 b/d of added capacity will bring system capacity to 250,000 b/d.

Pembina announced Phase 1 LVP expansion Dec. 1, 2011, adding 40,000 b/d to reach 195,000 b/d by yearend 2013. Pembina has received regulatory approval and commenced building the project. Work on Phase 2 is conditional on meeting commercial and regulatory requirements.

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

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