The Phase III Expansion is underpinned by long-term take-or-pay transportation services’ agreements with 30 customers in Pembina’s operating areas, and is expected to be in service between late 2016 and mid-2017, subject to environmental and regulatory approvals.
The core of the Phase III Expansion will entail constructing a new 270 km, 24 inch diameter pipeline from Fox Creek, Alberta, to the Edmonton, Alberta area, which is expected to have an initial capacity of 320 Mbbl/d and an ultimate capacity of over 500 Mbbl/d with the addition of midpoint pump stations.
The total 540 km long expansion will follow and expand upon certain segments of the company’s existing pipeline systems from Taylor, British Columbia, southeast to Edmonton to fulfil capacity needs for Pembina’s customers, with priority being placed on areas where debottlenecking is essential.
Once complete, Pembina will have three distinct pipelines in the Fox Creek to Edmonton corridor. With the company’s existing pipelines and current expansions, these three pipelines are expected to have the designed capacity to transport up to 885 Mbbl/d if fully expanded.
The Phase III Expansion follows a series of growth projects on Pembina’s conventional pipeline infrastructure, resulting from the successful development by oil and gas producers of resources plays in the Montney, Duvernay, and Deep Basin Cretaceous formations.
With the addition of the Phase III Expansion, Pembina’s previously announced 2014 capital spending plan will increase from $US1.4 billion to $US1.6 billion. Pembina expects the majority of spending associated with this project will occur during the main construction periods from 2015 through 2016.