CALGARY, A.B. — Pembina Pipeline Corp. says it will be launching the Phase VI expansion of its Peace Pipeline system to support growth in the Montney and Deep Basin resource plays.
The Company said its Pipeline Division has continued to receive strong demand for its services. Pembina’s Phase III expansion in July 2017 expanded capacity in the corridor that transports crude oil, condensate and natural gas liquids into the Edmonton area market. The Company is also currently progressing construction of its Phase IV and Phase V expansions, which are adding capacity between Fox Creek and Namao, and reducing pipeline bottlenecks upstream of Fox Creek. Pembina said it expects both projects to be placed into service in late 2018.
Following the completion of Phase IV, the Company will have approximately 1.1 million barrels per day of total capacity for delivery into the Edmonton area market. Pembina has the ability to further expand capacity to at least 1.3 million barrels per day through the addition of pump stations and other upgrades between Fox Creek and Namao.
The Phase VI expansion includes upgrades at Gordondale; a 16-inch pipeline from LaGlace to Wapiti and associated pump station upgrades; and a 20-inch pipeline from Kakwa to Lator, Alberta. The approximately $280 million Phase VI expansion is anticipated to be in service in early 2020, subject to environmental and regulatory approval.
“It is exciting to announce another expansion of our Peace Pipeline,” said Mick Dilger, Pembina’s President and Chief Executive Officer. “As producers continue to develop the Western Canada Sedimentary Basin, our assets are strategically located and readily expandable to provide a fully integrated service offering to support our customers’ future needs.”
Pembina is continuing to secure long-term contracts on its Peace and Northern Pipeline systems and currently expects peak firm volume commitments will reach approximately 830,000 barrels per day in 2019.