Pembina to go ahead with Cdn$ 115 million Peace pipeline expansion

Pembina Pipeline Corp. has announced that it is going ahead with a Cdn$ 115 million expansion to its Peace Pipeline System northwest of Edmonton, which will initially deliver an additional 40 000 bpd to its Fox Creek Terminal.

60 km of new 16 in. pipe

The project, called the Simonette Pipeline Expansion, will involve installing about 60 km of new 16 in. pipeline along Pembina's existing right-of-way, serving producers in the Montney and Duvernay shale formations.

From Fox Creek, the resource will be able to access the Edmonton market on other planned Pembina pipelines.

Once complete, Pembina will have three pipelines along the corridor that can segregate and ship various grades of crude oil, condensate and natural gas liquids.

Provided it receives the regulatory go-ahead, Pembina said it expects to begin construction this Winter and start up the new pipeline during Q3, 2014.

Truck unloading facilities

Pembina also plans to install eight truck unloading risers at the Fox Creek terminal in conjunction with the Simonette project. Those are expected to be up and running in Q4 this year. The addition of high capacity truck unloading facilities will allow producers to access Edmonton area markets through previously announced Phase I and II Peace Pipeline mainline expansions.

"The additional capacity provided by these expansions will help ensure our customers have timely access to markets as they continue to pursue their drilling and production plans," said company Chief Operating Officer Mick Dilger.

"The Simonette Pipeline Expansion Project ties in directly with our Open Season process by installing sufficient capacity for all anticipated future production growth coming from that particular area. With our existing asset footprint and rights-of-way, we are happy to have the flexibility to phase-in solutions such as this to alleviate capacity constraints while we solidify the remainder of our development plans. We expect to have additional information to share with our shareholders, stakeholders and customers regarding the Open Season in the coming weeks and months”, says Dilger.

Edited from various sources by Elizabeth Corner

Read the article online at: https://www.worldpipelines.com/business-news/18092013/pembina_to_go_ahead_with_peace_pipeline_expansion/