Pembina planning a C$ 470 million spend for 2011

Pembina Pipeline Corporation is planning to spend approximately C$ 470 million in 2011, with the majority targeted at projects expected to provide new sources of cash flow by mid-year.

“Our growth strategy is on track,” said Bob Michaleski, President and Chief Executive Officer. “We expect the bulk of our 2011 investments to begin generating returns as we take some of our key expansion projects to the commissioning stage during the first half of the year.”

Approximately C$ 215 million, nearly half of Pembina's 2011 capital budget, is allocated to completing construction of the Nipisi and Mitsue Pipeline projects. The two pipelines, which will provide diluent supply and heavy oil takeaway capacity for the region north of the Town of Slave Lake, Alberta, are on target for start-up mid-2011. Pembina estimates that the two pipelines, which are expected to cost approximately C$ 440 million when complete, will generate approximately C$ 45 million per year in net operating income once fully operational.

Other projects Pembina plans to complete in 2011 include the construction of a new facility to extract up to 14,400 bpd of additional natural gas liquids from its Cutbank Complex gas gathering and processing facility, and the Willesden Green project, which is expected to add 25,000 bpd of throughput capacity to its Drayton Valley pipeline system.

Read the article online at: https://www.worldpipelines.com/business-news/10032011/pembina_planning_a_c$_470_million_spend_for_2011/