Pembina Pipeline Corp. has reached binding commercial agreements to proceed with its $2 billion Phase III Pipeline Expansion. Pembina expects the 540-km expansion to enter service between late 2016 and mid-2017, subject to environmental and regulatory approvals.
Phase III will follow and expand certain segments of Pembina’s existing pipeline systems from Taylor, BC, southeast to Edmonton, Alta., with priority placed on areas in need of debottlenecking. The core of the expansion will entail building a 270-km, 24-in. OD pipeline from Fox Creek, Alta., to the Edmonton area.
The expansion will have an initial capacity of 320,000 b/d, expandable to more than 500,000 b/d with the addition of midpoint pump stations. Once complete, Pembina will have three distinct pipelines in the Fox Creek-to-Edmonton corridor, with a combined capacity of 885,000 b/d if fully expanded.
The expansion will also increase pipeline interconnectivity between Edmonton and Fort Saskatchewan, including Pembina's Redwater and Heartland Hub sites and third-party delivery points in these areas. Pembina earlier this year acquired a site in the Alberta Industrial Heartland to support development of Heartland Hub; a rail, terminalling, and storage expansion of its Nexus terminal (OGJ Online, Sept. 5, 2013). The company has also been expanding its gas-plant infrastructure in west-central Alberta (OGJ Online, Aug. 13, 2013).
Phase III is underpinned by 10-year take-or-pay transportation services agreements with 30 customers for combined volumes of more than 230,000 b/d. The company anticipates securing further pipeline transportation commitments over the next 6-9 months while it refines project scope.
Activities related to obtaining regulatory approvals are underway and Pembina will begin First Nation consultation and its public involvement program for the expansion in early 2014.
Contact Christopher E. Smith at [email protected].