CALGARY—Pembina Pipeline Corp. said it plans to spend $105 million on an expansion project at one of its Alberta facilities that will add 100 million cubic feet per day of gas processing capacity.
The Calgary-based company said the project at its shallow-cut gas plant that makes up part of its Cutbank system in western Alberta will boost capacity for local producers under long-term agreements.
“The areas surrounding Pembina’s existing gas processing facilities at Musreau, part of our Cutbank complex, continue to be a focus for our customers producing liquids-rich natural gas,” Pembina senior vice-president of natural gas Stuart Taylor said in a statement.
The project is the third at the Musrea plant.
“Musreau III will leverage the engineering and design work for our Musreau I and Musreau II facilities and will use the same pipeline lateral to access our Peace pipeline system,” Taylor continued. “With the successful execution of our Musreau II facility nearing completion ahead of schedule and on budget, I am confident that Musreau III will bring another win for us as we will use our proven ‘assembly line’ approach to facility design and construction.”
Pembina said it expects Musreau III to have a liquids extraction capacity of approximately 3,000 barrels per day.
The agreements signed with undisclosed area producers for Musreau III are take-or-pay, according to the company.
“In total, once Musreau III is complete, the Cutbank complex will have approximately 570 million cub feet per day of shallow-cut processing capacity, 205 million cubic feet per day of deep-cut processing capacity, and will produce roughly 25,000 barrels per day of liquids for transportation on our conventional pipelines,” said Taylor.
Pembina expects the expanded facility to be online in mid-2016.