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Pembina provides pipeline expansion update

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World Pipelines,

Pembina Pipeline Corporation announced that in order to accommodate incremental volume commitments from customers, the company is adding additional infrastructure and increasing operational flexibilities to its previously announced Phase V pipeline expansion (Phase V), which included a 20 in. pipeline from Lator to Fox Creek, Alberta. The company is also revising its capital cost estimate for Phase V by an additional CAN$135 million for a total capital cost of CAN$385 million.

The company's conventional pipelines' business has continued to receive customer demand for its transportation services. Since Phase V was originally announced in April 2017, Pembina has secured approximately 30 000 bpd in additional volume commitments.

The Phase V capital cost estimate revision is a result of:

  • CAN$90 million towards increased receipt station functionality at Lator by adding 40 000 bbls of operational crude and condensate storage, new tie-ins and site modifications, a new pump station near Dawson Creek, British Columbia (B.C.) and upgrading an existing pump station at Gordondale, Alberta.
  • CAN$45 million due to capital cost refinements, including changes to volume receipt locations.

Through the Phase V project enhancements, the pipeline capacity will be increased by an incremental 45 000 bpd upstream of Laglace, Alberta. In addition to accommodating further customer demand, this will improve operational efficiencies and offer more optionality, which will ultimately provide a better service offering for Pembina's customers.

Phase V is aimed at addressing capacity constraints between Lator and Fox Creek and supporting future growth in the Montney and Deep Basin resource plays. The project is expected to provide additional capacity in this corridor and access to Pembina's downstream capacity at Fox Creek. Clearing and access to the right-of-way is now 90% complete with construction expected to commence shortly. The company continues to anticipate bringing Phase V into service in late-2018. Once operational, Pembina will have three distinct pipelines between Lator and Fox Creek.

The company also continues to progress regulatory approvals, design and engineering of the two pump stations for its previously announced Phase IV pipeline expansion (Phase IV). Phase IV will increase capacity between Fox Creek and Namao, Alberta.

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