Pembina Pipeline to build gas plant in west-central Alberta

Aug. 13, 2013
Pembina Pipeline Corp., Calgary, will build and operate a 100-MMcfd shallow-cut gas plant called the Musreau II and associated NGL and gas gathering pipelines near its current Musreau plant in its western central Alberta Cutbank complex.

Pembina Pipeline Corp., Calgary, will build and operate a 100-MMcfd shallow-cut gas plant called the Musreau II and associated NGL and gas gathering pipelines near its current Musreau plant in its western central Alberta Cutbank complex.

The $110 million (Can.) Musreau II is backstopped by long-term contracts with area producers for 100% of its capacity, Pembina reported. Subject to regulatory and environmental approval, Pembina expects Musreau II to be in service in first-quarter 2015.

It will extract C3+ and yield about 4,200 b/d of NGL that will move in Pembina’s “conventional” pipelines, which the company identifies as 7,850 km of pipelines that transport about half of Alberta’s conventional crude oil production, about 30% of the NGL produced in Western Canada, and “virtually all of the conventional oil and condensate produced in British Columbia.”

Pembina said its gas services business has 368 MMcfd net shallow-cut processing capacity, as well as 205 MMcfd of deep-cut capacity in operation. Additional capacities will be available from the following projects:

• 200 MMcfd to come on stream in this year’s third quarter at its Saturn I plant in the Berland area of west-central Alberta.

• 200 MMcfd to come on stream in third-quarter 2014 at the Resthaven plant, also in west-central Alberta. The $230 million Resthaven, including plant, pipelines, and storage, in addition to gas processing, will have 13,000 b/d of liquids extraction capability and ultimately be able to process 300 MMcfd.

• 200 MMcfd on stream in late 2015 as part of the Saturn II project.

With the addition of Musreau II, Pembina's gas processing capacity will reach about 1.2 bcfd by yearend 2015, the company said.