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Pembina expansion plans approved

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World Pipelines,

After receiving regulatory approval, Pembina Pipeline Corporation (Pembina) has begun construction on its pipeline infrastructure in northeast British Columbia (NEBC expansion). The work is part of a previously announced expansion project.

The project includes construction of approximately 145 km of 12 in. dia. pipeline with a base design capacity of up to 75 000 bpd. This will parallel much of the existing Blueberry pipeline system.

The NEBC expansion will transport natural gas liquids and condensate produced in the liquids-rich Montney resource play to Pembina’s downstream pipeline systems. It will then feed into markets in the Edmonton and Fort Saskatchewan, Alberta area.

Paul Murphy, Pembina’s Senior Vice President of Pipelines and Crude Oil Facilities, commented: "The NEBC expansion strengthens Pembina's presence within the prolific geology of northeast BC and is located in close proximity to a variety of area producers who may have future transportation needs."

One of Pembina’s customers Resthaven gas processing facility has filed for receivership. The receiver has finalised a purchase and sale agreement, under which Pembina expects all previously executed agreements with Pembina to be be assigned and fully assumed without any modifications. The receiver expects to close the transaction in 1Q17.

"The approval of our NEBC expansion and impending resolution to this receivership are a great start to 2017," said Mick Dilger, Pembina's President and CEO. "We are looking forward to the year ahead and the transformation it will bring for our company and shareholders as we bring the bulk of our assets under construction into service and start generating associated cash flows.”

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B.C. pipeline news Canada pipeline news