Pembina Pipeline Corporation (Pembina) has announced that it has entered into agreements with a multinational, investment grade customer to construct associated infrastructure relating to the company's previously announced 100 million ft3/d shallow cut gas plant, Duvernay I. The supporting infrastructure includes condensate, gas and water field handling (field hub), a gas gathering trunk line and a fuel line for a total expected capital cost of approximately CAN$130 million.
The field hub is committed under a long-term, fixed-return agreement and will connect to the customer's development well pads providing separation, stabilisation and other supporting services. In addition, Pembina will construct a 35 km gas gathering trunk line, which creates a gas gathering backbone between the Tony Creek, Alberta and Fox Creek, Alberta areas that will connect the Field Hub to Pembina's Duvernay I facility. The field hub will also connect into Pembina's Peace Pipeline system. To align with the in service date of Duvernay I, Pembina anticipates bringing the Field Hub and the associated infrastructure into service in the second half of 2017, subject to regulatory and environmental approval.
Additionally, Pembina executed a long-term, fee-for-service gas processing agreement at the Duvernay I facility. With this agreement, Duvernay I is now fully contracted and Pembina has begun preliminary engineering on a 'twin' Duvernay II facility.
"Our strategic position in the Duvernay continues to provide opportunities for us to expand our reach and service offering for our customers," said Mr. Jaret Sprott, Pembina's Vice President, Gas Services. "We are also pleased to be strengthening our relationships with large, credit worthy counterparties."
Edited from source by Stephanie Roker