Pembina Pipeline Corp., Calgary, has entered into commercial agreements to proceed with a $170-million expansion of the company's recently completed 200-MMcfd Resthaven facility. The company also will build, own, and operate a new gas gathering pipeline that will deliver gas into the facility.
The expansion is underpinned by a long-term, fee-for-service contract with Mosaic Energy Ltd. The gas processing component of the project is expected to cost $105 million and increase capacity of the existing facility by an additional 100 MMcfd, bringing total capacity to 300 MMcfd.
The $65-million, 28-km, 12-in. gas gathering pipeline will connect the customer’s condensate recovery plant into the facility. Additional NGLs that will be extracted from the processed gas will be transported on the recently constructed Resthaven lateral.
Should all the partners in the existing facility participate in the project, Pembina’s capital for the plant will decrease to $75 million and its incremental expansion capacity (net) will be 69 MMcfd.
Subject to regulatory and environmental approvals, the pipeline is expected to be in-service by second-quarter 2015, with the gas processing expansion operating in mid-2016.
Pembina also has signed a long-term contract with Mosaic for Phase III pipeline capacity and fractionation capacity at the company’s Redwater fractionation and storage facility (OGJ Online, May 13, 2014).
“This is an exciting opportunity given the attractive regional geology, including the Montney, Wilrich, and other cretaceous reserve potential,” said Stuart Taylor, Pembina senior vice-president, NGL and natural gas facilities.