A 108 000 bpd expansion of Western Canadian pipeline systems will cost Calgary-based operator Pembina Pipeline Corp., Cdn$ 670 million (US$ 673 million).
The company recently announced its expansion plans following an earlier report of a 2% rise in Q3 profit. Pembina officials said the plan is to boost the size of the Peace and Northern pipeline systems to accommodate rising production.
The Peace pipeline system carries oil and natural gas condensate from fields in northeastern British Columbia and northwestern Alberta to a transportation hub in Edmonton, Alberta. With an attached pricetag of Cdn$ 215 million, the company will increase capacity on the system by 55 000 bpd to 250 000 bpd by the end of 2014.
The company will also raise the capacity of the Northern pipeline system, by 53 000 bpd to 220 000 bpd, at an estimated cost of Cdn$ 330 million. This expansion is set to be completed by the middle of 2015.
The line takes natural gas liquids from fields in B.C. and northwestern Alberta to the Fort Saskatchewan refining centre near Edmonton.
The company revealed that a further Cdn$ 125 million has been set aside to invest in tying new fields into the expanded lines.
The company reported earlier that its Q3 profit rose to Cdn$ 30.7 million, or 11 Canadian cents a share, from Cdn$ 30.1 million, or 18 Canadian cents, in Q3, 2011.
Edited from various sources by Cecilia Rehn.
Read the article online at: https://www.worldpipelines.com/business-news/07112012/pemina_pipeline_corp_plans_oil_and_natural_gas_pipeline_expansions/