LATEST NEWS Heavy Equipment
October 7, 2013
Pembina plans $115 million pipeline expansion
Pembina Pipeline Corporation is planning to move forward with a $115 million expansion project that will increase capacity at a truck terminal and a pipeline between Simonette and Fox Creek, Alberta.
“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 Mick Dilger, Pembina’s President and Chief Operating Officer.
The project known as the Simonette Pipeline Expansion will install about 60 kilometres of 16-inch pipeline along Pembina’s existing right-of-way. It is expected to initially deliver 40,000 barrels per day of additional liquids to Pembina’s Fox Creek Terminal.
The project also involves the installation of eight clean crude oil and condensate truck unloading risers at the Fox Creek Terminal, which are scheduled for completion in the fourth quarter of 2013.
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.
Phase 1 involves the expansion of crude oil and condensate capacity on Pembina’s Peace Pipeline system by an additional 40,000 bpd to reach 195,000 bpd by the end of 2013.
Pembina expects Phase 2 to add an additional 55,000 bpd of capacity by mid to late 2014. Once complete, the expansions will increase capacity on the Peace Pipeline by 61 percent to 250,000 bpd.
These expansions will allow increased crude oil and condensate volumes from producers in Dawson Creek, Grande Prairie, Kaybob and Fox Creek.
Pembina expects to start construction on the pipeline project this winter, with an estimated in-service date in the third quarter of 2014, subject to receiving approvals.
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