Pembina Pipeline Corporation has announced a further expansion of its Peace Pipeline system to accommodate incremental volume commitments in support of growth in the Montney and Deep Basin resource plays.
The company's Pipeline Division has continued to receive strong customer demand for its transportation services, which has resulted in a significant and ongoing build-out of its pipeline systems. Pembina's Phase III expansion, previously placed into service in July 2017, expanded capacity between Fox Creek and Namao, Alberta, the Company's 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 expansion ("Phase IV"), which is adding capacity between Fox Creek and Namao, and its Phase V expansion, which is debottlenecking upstream of Fox Creek, and expect 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 ("mmbpd") of total capacity for delivery into the Edmonton area market. Pembina has the ability to further expand capacity to at least 1.3 mmbpd through the addition of pump stations and other upgrades between Fox Creek and Namao.
The latest expansion, Phase VI, includes: upgrades at Gordondale, Alberta; a 16-inch pipeline from LaGlace to Wapiti, Alberta 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.