CALGARY, A.B. – Pembina Pipeline Corporation has announced new infrastructure projects worth $120 million.
Pembina will be developing additional pipeline and terminalling infrastructure in the Wapiti region near Grande Prairie, Alberta and in northeast B.C.
“Pembina’s base business is performing well. We are seeing increased throughput on our conventional pipelines and fractionators, strong results from the assets acquired previously from Veresen and higher marketing revenues due to widening frac spreads,” said Scott Burrows, Senior Vice President and Chief Financial Officer.
Pembina’s northeast B.C. pipeline was placed into service in October 2017 and serves to connect liquids volumes from the northeast B.C. Montney for transportation into the Edmonton area via Pembina’s downstream systems. The NEBC Expansion has a capacity of 75,000 bpd and operates under a long-term cost-of-service arrangement. To support additional volumes on the NEBC Expansion and ultimately Pembina’s downstream pipelines, Pembina has entered into agreements with an anchor customer to construct new infrastructure at, and in proximity to, Pembina’s Birch Terminal.
The new infrastructure will include an area production connection to Pembina’s Birch Terminal as well as upgrades to the terminal including additional storage and pumps, along with minor site modifications.
“Our strategic position in the liquids-rich areas of the Alberta and BC Montney continues to provide opportunities for us to expand,” stated John de la Mare, Vice President, Conventional Pipelines. “Pembina’s staged approach to the expansion of the Peace pipeline provides timely and reliable transportation service to meet our customers’ specific needs. As a result, we have continued to increase long-term volumes under commitment since the Phase III expansion of Peace went into service last year,” added Mr. de la Mare.
In the Wapiti region, Pembina will build the Wapiti Condensate Lateral pipeline, a new 12-inch, 30 kilometre pipeline that will connect growing condensate volumes from a third-party owned facility in the Pipestone Montney region into Pembina’s Peace pipeline.
The Wapiti Condensate Lateral will be constructed in tandem with Pembina’s Phase VI expansion, affording considerable efficiencies and minimizing incremental land disturbance.
Subject to regulatory and environmental approvals, the project is expected to be in-service in the second half of 2019, aligning with the in-service timing of Phase VI.