Pembina Pipeline Corporation is extending the reach of its conventional pipeline system to provide alternative liquids transportation solutions to producers in the greater Edson, Alberta area.
The reactivation and recertification of an existing 6-inch line from Windfall Junction on Pembina’s Peace Pipeline system to Edson will provide transportation options for producers of liquids rich gas in Deep Basin Cretaceous plays, including Cardium oil opportunities south of Edson. Pembina is currently completing various re-commissioning activities such as in line inspection, recertification and hydrostatic testing.
Pembina expects the re-commissioned pipeline will be in-service in mid-2011 at a cost of approximately $15 million and is underpinned by a long-term transportation agreement with an area producer for approximately 5,000 bpd. The reactivated pipeline will have an initial capacity of approximately 12,500 bpd and ultimate capacity of approximately 17,500 bpd. With high levels of industry activity in the greater Edson area, additional capacity and tie-in opportunities are expected to be available on the new line segment.
“By leveraging existing infrastructure in this area, Pembina is able to provide reliable and cost effective liquids transportation options for producers to deliver their products to market” said Bob Michaleski, Pembina’s president and CEO. Pembina transports crude oil and NGLs produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in midstream and gas.