Will spend another $125M to connect customers to the two systems
CALGARY — Pembina Pipeline Corp. is expanding two of its pipeline systems as oil and gas drilling activity in northwestern Alberta and northeastern BC heats up.
The Calgary-based company is spending a total of $545 million to expand its crude oil and natural gas liquids (NGL) systems by a collective 108,000 barrels per day, plus another $125 million to connect customers to the expanded pipelines.
“With the amount of development of crude oil and NGL-rich resource plays we’re seeing by producers near our pipelines in the Western Canadian Sedimentary Basin, there is a strong demand for this next phase of our growth strategy,” said chief operating officer Mick Dilger.
Pembina’s Peace crude oil system will be expanded by 55,000 barrels per day by late 2014. That’s on top of a previously announced 40,000-barrel-per-day expansion to come in service next year.
Meanwhile, the 53,000-barrel-per-day expansion to Pembina’s Northern NGL system is set to come into service by early to mid-2015.
That system, too, had already been undergoing an expansion to add 52,000 barrels per day of capacity by the end of 2013.
Once the expansions are complete, the Peace pipeline will be able to ship 250,000 barrels per day and the NGL system will have a capacity of 220,000 barrels per day.
The projects involve adding and upgrading pump stations, as well as reconfiguring and building new pipe.
© 2012 The Canadian Press