Pembina Pipeline Corporation has reportedly announced $120 million worth of new infrastructure projects to develop additional pipeline and terminalling infrastructure. The projects are slated to be executed in Alberta’s Wapiti region and in northeast B.C.
Senior Vice President and Chief Financial Officer of Pembina, Scott Burrows, said in a statement that the base business of Pembina is performing well and that the company is obtaining increased throughput on its conventional pipelines and fractionators. He informed that the company is getting higher marketing revenues as a result of widening frac spreads and strong results due to previous assets acquired from Veresen.
Apparently, the northeast B.C. Montney project will witness expansion to support additional volumes and Pembina has entered into partnerships with an anchor customer to build new infrastructure near the Pembina Birch Terminal. The new infrastructure will supposedly include upgrades to the terminal, like additional pumps, more storage and minor site modifications, along with an area production connection to Pembina’s Birch Terminal.
Citing credible sources, Pembina will construct the Wapiti Condensate Lateral pipeline, a new 30 kilometer pipeline with 12-inch width in the Wapiti region, connecting the growing condensate volumes from a facility owned by a third-party in the Pipestone Montney region into Peace pipeline of Pembina. Simultaneous execution of Pembina’s Phase VI expansion and the construction of the Wapiti Condensate Lateral will result in minimized incremental land disturbance and considerable efficiencies.
The project is expected to be in-service by the second half of next year, subject to regulatory and environmental approvals, aligned with the Phase VI in-service timing, the sources confirmed.
Vice President of Conventional Pipelines, John de la Mare stated that the company’s strategic position in the liquids-rich areas of Alberta and British Columbia Montney is continuing to provide them with expansion opportunities. He added that Pembina’s approach to expand the Peace pipeline provides reliable and timely transportation service to satisfy their customers’ needs.