Pembina Pipeline Corp. plans to significantly expand its NGL and crude oil and condensate throughput capacity on its Peace and Northern Pipeline systems by an additional 108,000 bpd.
These expansions are expected to accommodate increased volumes associated with higher customer demand due to strong drilling results and increased field liquids extraction by area producers. The total cost is estimated at $545 million plus $125 million of additional capital to tie in producers to both expanded systems.
Plans include boosting capacity on Peace Pipeline by 55,000 bpd by mid- to late-2014 and its Northern NGL system by 53,000 bpd by early- to mid-2015.
“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 Mick Dilger, Pembina’s President and CEO.
Pembina is completing Phase 1 of an NGL expansion of 52,000 bpd, which was announced in November 2011, and Phase 1 of a crude oil and condensate expansion on the Peace Pipeline of 40,000 bpd, announced in December 2011.