Pembina’s $2 Billion Pipeline Expansion

February 2014, Vol. 241 No. 2

Pembina Pipeline Corp. has reached binding commercial agreements to proceed with $2 billion in pipeline expansions, the largest expansion in its history.

The 540-km Phase III Expansion will follow and expand upon segments of the company’s existing pipeline systems from Taylor, British Columbia, southeast to Edmonton, Alberta, to fulfill capacity needs for Pembina’s customers, with priority being placed on areas where debottlenecking is essential.

The core of the Phase III Expansion will entail constructing a 270-km 24-inch pipeline from Fox Creek, Alberta, to the Edmonton area, which is expected to have an initial capacity of 320,000 bpd and an ultimate capacity of over 500,000 bpd with the addition of midpoint pump stations. Pembina will have three distinct pipelines in the Fox Creek to Edmonton, Alberta corridor. With the company’s existing pipelines and current expansions, these three pipelines are expected to have designed capacity to transport up to 885,000 bpd, if fully expanded.

The Phase III Expansion also contemplates increasing pipeline interconnectivity between Edmonton and Fort Saskatchewan including Pembina’s Redwater and Heartland Hub sites as well as third-party delivery points in these areas. Phase III Expansion is underpinned by long-term take-or-pay transportation services agreements with 30 customers in Pembina’s operating areas and is expected to be in service between late 2016 and mid-2017.