Pembina has entered into a transportation agreement with the five shippers for up to 136,000brl/d until 31 October 2031.
Construction of the $42-million Cheecham Lateral is currently underway, and the line is expected to be operational by November. The 56-km pipeline will transport synthetic crude oil (‘SCO’) from the newly-constructed outlet on Pembina’s Alberta oilsands pipeline for delivery to a new terminal facility located near Cheecham, Alberta. Pembina anticipates that the cash flow generated under the 25-year agreement will provide approximately 2% annual accretion to the company’s distributed cash flow.