Pembina Pipeline Corp. plans to expand the Vantage pipeline system for an estimated $85 million. The expansion entails increasing Vantage’s mainline capacity from 40,000 bpd to 68,000 bpd through the addition of mainline pump stations and the construction of a 80-km, 8-inch gathering lateral.
The mainline expansion is supported by a long-term, fee-for-service agreement, with a substantial take-or-pay component. The gathering lateral is underpinned by a fixed return on invested capital agreement. The expansion is expected to be in-service in early 2016.
“This expansion has been a priority for us since acquiring Vantage in September 2014, and we are very pleased to see it come to fruition,” said Mick Dilger, Pembina’s president and CEO.
Vantage is a recently constructed 700-km, high-vapor pressure pipeline that links a growing supply of ethane from the North Dakota Bakken play to the petrochemical market in Alberta. It originates from a large-scale gas plant in Tioga, ND, extending northwest through Saskatchewan and terminating near Empress, Alberta where it connects to the Alberta Ethane Gathering System pipeline.