Pembina to expand NGL and crude capacity on its Peace and Northern pipeline systems

US-based transportation and midstream service provider Pembina Pipeline intends to expand the natural gas liquids (NGL) and crude and condensate pipeline throughput capacity on its Peace and Northern pipeline systems to add an additional 108,000 barrels per day.

The cost of the project is estimated to be $545m, which includes an additional capital of $125m to tie in producers to both the expanded systems.

The company’s Peace pipeline will be expanded by 55,000 barrels per day by mid to late-2014, and its Northern NGL System by 53,000 barrels per day by early to mid-2015.

Expansion in the Phase 2 NGL pipeline will include installing four new pump stations, upgrading three existing pump stations and adding extra operational storage.

Plans are in place to build 94km of new pipeline, which will include 50km from Judy Creek to Whitecourt, 32km from Namao to Fort Saskatchewan and12km from Doe Creek to Spirit River, plus reconfigure existing pipelines.

The Phase 2 NGL expansion, which is estimated to cost $330m, will increase the capacity of the pipeline by 32% to 220,000 barrels per day, once it is brought into service in early to mid-2015.

The expansion of Phase 2 LVP Peace pipeline will include installing five new pump stations, upgrading six existing pump stations, adding extra operation storage, reconfiguring existing pipelines and building 10km of new pipeline from Gordondale to Spirit River.
The Phase 2 LVP expansion, which is estimated at $215m, will increase the capacity of the pipeline by 28% to 250,000 barrels per day.

Pembina chief operating officer, Mick Dilger, said there will be a strong demand for this next phase as development can be seen in company’s crude oil and NGL-rich resource located in the Western Canadian Sedimentary Basin.

"Our pipeline expansions will allow us to enhance the services we provide customers while adding value to our shareholders," said Dilger.

Pembina will increase its capacity by 105,000 bpd or 91% upon completion of the Phase 1 and 2 NGL expansions and increase the capacity by 95,000 barrels per day or 61% on completing the Phase 1 and 2 LVP expansions.