Pembina Pipeline entered into agreements with a multinational firm to construct infrastructure relating to its previously announced Duvernay I, a 100 MMcf/d shallow cut gas plant. The construction work includes condensate, gas and water field handling, a gas gathering trunk line and a fuel line, valued at about $130 million.
The Field Hub is committed under a long-term, fixed-return agreement and will connect to the customer’s development well pads providing separation, stabilization and other supporting services. In addition, Pembina said it will construct a 35-km gas gathering trunk line, which creates a gas gathering backbone between the Tony Creek, Alberta and Fox Creek, Alberta areas that will connect the hub to Pembina’s Duvernay I facility. The Field Hub will also connect into Pembina’s Peace Pipeline system.
To align with the in service date of Duvernay I, Pembina anticipates bringing the Field Hub online in the second half of 2017.
Additionally, Pembina executed a long-term, fee-for-service gas processing agreement at the Duvernay I facility. With this agreement, Duvernay I is now fully contracted and Pembina has begun preliminary engineering on a “twin” Duvernay II facility.