Canadian Manufacturing

Pembina to spend $125M to build new Duvernay gas plant

Pipeline says despite market uncertainty, customers still committed to development

CALGARY—Pembina Pipeline Corp, says it plans to build a new 100 million cubic feet per day shallow cut gas plant near its Fox Creek Terminal, about 270 kilometres northwest of Edmonton.

Pembina said Thursday that the estimated the capital cost of the Duvernay I project, including supporting infrastructure, is $125 million.

It is expected to be in operation in the second half of 2017, subject to regulatory and environment approvals.

“In spite of uncertainty in commodity markets, Pembina’s customers continue to remain committed to the development of the Western Canadian Sedimentary Basin,” Stuart Taylor, senior vice-president of NGL and natural gas facilities, said in a statement announcing the project.

Pembina said the plant will have a natural gas liquids extraction capacity of approximately 5,500 barrels per day, subject to gas compositions.

Similar to the Company’s other gas processing facilities, the agreement for Duvernay I is take-or-pay in nature and will provide flow-through of operating expenses.

Once complete, Pembina’s gas services business will have approximately 1.6 billion cubic feet per day of gas processing capacity and will produce over 75,000 bpd of NGLs for transportation through the company’s conventional pipelines.

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