Pembina Pipeline Corporation today announced that in order to accommodate incremental volume commitments from customers, the company is adding additional infrastructure and increasing operational flexibilities to its previously announced Phase V pipeline expansion, which includes a 20-inch pipeline from Lator to Fox Creek, Alberta. Pembina is also revising its capital cost estimate for Phase V by an additional $135 million for a total capital cost of $385 million.
The Phase V capital cost estimate revision includes:
- $90 million towards increased receipt station functionality at Lator by adding 40,000 barrels of operational crude and condensate storage, new tie-ins and site modifications, a new pump station near Dawson Creek, British Columbia and upgrading an existing pump station at Gordondale, Alberta
$45 million due to capital cost refinements, including changes to volume receipt locations
Through the Phase V project enhancements, the pipeline capacity will be increased by an incremental 45,000 barrels per day upstream of Laglace, Alberta. In addition to accommodating further customer demand, this will improve operational efficiencies and offer more optionality, which will ultimately provide a better service offering for Pembina’s customers.
Phase V is aimed at addressing capacity constraints between Lator and Fox Creek and supporting future growth in the Montney and Deep Basin resource plays. The project is expected to provide additional capacity in this corridor and access to Pembina’s downstream capacity at Fox Creek. Clearing and access to the right-of-way is now 90 percent complete with construction expected to commence shortly. Pembina expects to bring Phase V into service in late-2018.